Kapitalisaatio

Kapitalisaatio, often translated as capitalization or market capitalization, is a financial term used to measure the total value of a company's outstanding shares of stock. It is calculated by multiplying the current market price of a single share by the total number of shares that have been issued by the company. For example, if a company has 1 million shares outstanding and each share is trading at $10, its market capitalization would be $10 million.

This metric is a widely used indicator of a company's size and perceived value in the stock market. Investors and analysts use market capitalization to categorize companies into different groups, such as large-cap, mid-cap, and small-cap. These classifications can help in understanding a company's risk profile, growth potential, and investment strategies. Large-cap companies are generally considered more stable and less volatile than small-cap companies, which may offer higher growth opportunities but also carry greater risk.

Market capitalization is a dynamic figure that fluctuates constantly with changes in the stock price. It is not a measure of a company's total assets or its profits, but rather reflects the market's current valuation of the company's equity. Therefore, it is important to consider market capitalization in conjunction with other financial metrics when evaluating an investment.