Capitalisation of a company

Discussion in 'Strategy Development' started by lovell, Feb 8, 2007.

  1. lovell

    lovell

    Hi there :D I was wondering if the capitalisation of a company means anything...
    When it has a huge capitalisation, what does it mean? and vice versa.

    Hope to hear from the professionals or anyone who knows about it...Opinions are also accepted

    Thanks
     
  2. I am not sure how many type of capitalisation there are in financial accounting. The more common one is Market Capitalisation, in short, Market Cap.

    This is:
    Number of outstanding shares x share price

    As an example, you can get the Market Cap of IBM at this Yahoo link:
    http://finance.yahoo.com/q/ks?s=IBM

    Replace the symbol with any that you want to find out.