The formula to calculate the Market Capitalization is:
\[ MC = PS \cdot OS \]
Where:
Market Cap is short for market capitalization and it is a financial term used to describe the overall value of a company based on the market perception of the company. In other words, it’s the value of the number of shares multiplied by the market price of those shares.
Let's assume the following values:
Using the formula:
\[ MC = 50 \cdot 1,000,000 = 50,000,000 \]
The Market Capitalization (MC) is $50,000,000.
