Market capitalisation

From ACT Wiki
Revision as of 22:02, 4 March 2023 by imported>Doug Williamson (Add definition - source - The Treasurer - March 2023 p20.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

1. Shareholder value measurement.

(Market cap).

The total market value of a listed company's equity.

Sometimes known as the 'equity market capitalisation', or abbreviated to 'capitalisation'.

The term highlights the idea that the market price may be overvaluing - or undervaluing - the company, when compared with its intrinsic value.

This concept is particularly important in the context of value investing.

2. Markets - assets.

The total current market value of any asset or class of assets.

Market capitalisation of cryptocurrencies falls by two thirds
"Cryptocurrency markets have suffered through several well publicised debacles, most recently, the spectacular downfall of their golden goose, the FTX cryptocurrency exchange.
Consequently, the market capitalisation of cryptocurrencies has fallen from almost $3tn in late 2021 to less than $1tn now."
Tamara Basic Vasiljev, Senior Economist, Oxford Economics - The Treasurer, March 2023, p20.

See also