9.1What is market capitalization? (recap)
1What is it?
Market cap is the total value the stock market puts on a company: share price × total shares.
2Why does it exist?
It measures size. Size affects stability, liquidity and growth potential.
3Calculation
Market cap = Price × Shares outstanding
- Price ₹2,000 × 50 crore shares = ₹1,00,000 crore.
₹1 lakh crore market cap.
4Quick revision
- Price × shares.
- Measures size, not quality.
5Knowledge check
Q1. Price ₹500, shares 20 crore. Market cap?Show answer
₹10,000 crore.
Q2. Does a higher share price mean a bigger company?Show answer
No.
Q3. Market cap changes when?Show answer
Every time the share price changes.
See it live on MojoStox