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Market capitalization - Coggle Diagram
Market capitalization
Effectiveness of market capitalization
It's the most easiest method; safe and relatively stable
Can be used to build a well- balanced portfolio
Can help to determine the size of the company
Defines a company's stage in development
Large-cap stocks
more conservative
Limitations of market capitalization
Not the only factor that can help the investor in an investment decision
It also does not consider returns such as dividends, stock splits, etc.
There are several factors that can impact the market cap
issue of shares by company
buy-back/repurchase by company
significant change in the price of the stock
sudden rise/ fall in price
Market capitalization is the market value of a Publicly traded Company's shares
Share price x Outstanding shares (Number of shares that has been authorized, issued and purchased
market capitalization could be used as an indicator of public opinion of a company's net worth
Market capitalization is used by the investment community in ranking the size of companies, as opposed to sales or total asset figures.
From least
Deutsche Telekom $84 billion
Vodafone $90 billion
AT&T $170 billion
Verizon $204 billion
Apple $735 billion