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Representative image for question: How is a publicly traded company's market capitalization calculated?

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Business

How is a publicly traded company's market capitalization calculated?

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How is a publicly traded company's market capitalization calculated?

Options:

Current share price multiplied by number of outstanding shares
Net income multiplied by outstanding shares
Total assets minus total liabilities
Annual revenue multiplied by profit margin

Correct answer: Current share price multiplied by number of outstanding shares

Explanation: Market capitalization is calculated as share price times outstanding shares; for example, Apple first surpassed a $2 trillion market capitalization milestone in 2020.

Created 2026-03-10T17:33:18.180Z. Updated 2026-03-10T17:33:18.180Z.

How is a publicly traded company's market capitalization... | QuestionStock