What is Market Capitalisation?
The Market Capitalisation or Market Cap is also known as the Market Value and is the total value of a publicly traded/listed company.
To work out the market value or market cap, you multiply the number of shares outstanding (total amount of shares a company has) by the current share price.
For example, in 2018, Netflix had 0.451 billion shares outstanding, if you times this by their share price of $367.03, their market cap would be $165.5 billion.
0.451 billion x $367.03 = $165.5 billion
Please know, the value of investments can go up as well as down and you may receive back less than your original investment, meaning, when investing your capital is at risk.
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