Market capitalization is the market value of all the shares of a publicly traded company. So this is the value
that stock market investors place on a company. Market capitalization is an easy way for investors to
determine the size of a business.
Market capitalization is calculated by multiplying the total number of a company’s outstanding shares by its
current share price. For example, if ABC Company had six billion shares outstanding, each with a market
value of $200, its market capitalization would be $1200 billion.
Synonym: Market Cap
If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more
A bond is nothing more than a debt. If you have forgotten your lunch and you borrow $20 from your friend, you owe them a debt. If you gave them a piece of paper indicating the amount of the debt, this piece of paper would be similar to a bond. Read more
Exchange traded funds (ETFs) are a pool of investments sold as a single product. Remember those cheesy christmas basket, filled with the standard jam jars and hot chocolate mix, your parents might have received? Read more