Stock Price versus Market Capitalization of a Company
Video:
The speaker does a quick overview on the differences between stock price and market capitalization. Stock price is not an accurate measure of a companies size, market cap is. A stock might be priced very high but there may not be many shares outstanding which would render the value of the entire company very low. Conversely, a low priced stock may have a very high number of shares in float which would render a large market capitalization.
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