Question
What is meant by Market Capitalization. I understand some parts of it, but...?
Ok, lets say that we have a company XYZ, which decides to have an IPO and release 25% of its worth. SO if shares trade at $10 each and there are 25 shares in the market, is the market capitalization 25 * $10 = $ 250 or rather $ 1000, taking into account the amount that is privately held?
1 year ago - 1 answers
Best Answer
Chosen by Asker
it's 1,000. If the company is releasing 25% of it's shares, that means 75% of the shares are being held by the insiders. Basically the outstanding shares X market value of the stock equals your market cap.
Source(s)
by stockjunkie
1 year ago
Asker's Rating: 