How much is a corporation worth? It is not measured by how many buildings it owns or how many people it employs.
It is how much its stock worth in the stock market. The market value of a company is called market capitalization or market cap. The
equation to calculate market cap of a company is:
Market Cap = (price per share) x (total number of shares outstanding)
 The XYZ company has 1,000,000 shares of common stocks outstanding. The
share price of XYZ is closed at 35 dollars per share.
The market cap of the XYZ company is:
$35 x 1,000,000 = $35,000,000
Top 10 U.S. companies by market cap
Bill Gates presently owns about 22% of Microsoft shares. How much is his net worth?
Estimate the answer
less than $20 billion
$20 to 25 billion
over $25 billion


|