Market capitalisation and Profit maximising output: Difference between pages

Latest revision as of 12:15, 23 November 2014

The output level at which marginal cost equals marginal revenue.

This results in the firm's profits being maximised.

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-(Market cap).
+The output level at which marginal cost equals marginal revenue.
-The total market value of a listed company's equity.
+This results in the firm's profits being maximised.
-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.
 == See also ==
-* [[Book value]]
+* [[Marginal cost]]
-* [[Capital]]
+* [[Marginal revenue]]
-* [[Capitalisation]]
+* [[Profit maximisation]]
-* [[Fair value]]
-* [[Fundamental analysis]]
-* [[Intrinsic value]]
-* [[Large-cap]]
-* [[Market value]]
-* [[Mid-cap]]
-* [[Small-cap]]
-* [[Value investment]]
-[[Category:The_business_context]]
+[[Category:Financial_management]]
-[[Category:Corporate_finance]]
+[[Category:Planning_and_projects]]
-[[Category:Investment]]
-[[Category:Financial_products_and_markets]]