Definition
Market cap changes with price and share count. It is useful for size comparison but does not show debt or enterprise value by itself.
Worked example
A company with 1 billion shares trading at Rs. 80 has a market cap of Rs. 80 billion.
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Glossary · PSX term
Market capitalization.
Market capitalization is the total market value of a listed company. It is calculated by multiplying share price by shares outstanding and helps investors compare company size.
More glossary terms
Browse all 199 terms →Market breadth
Market breadth measures how many stocks are rising versus falling, beyond just the index level.
Market sentiment
Market sentiment is the overall mood of investors toward the market, ranging from fearful to greedy.
Market halt
A market halt is a temporary, exchange-wide pause in trading triggered by a large index move.
Market order
A market order buys or sells immediately at the best available current price.
Margin financing
Margin financing lets you buy shares using borrowed money, putting up only part of the value yourself.
Margin call
A margin call is a demand to add funds when your leveraged position loses value past a limit.
Mutual fund
A mutual fund pools money from many investors to buy a managed portfolio of assets.
Material information
Material information is any fact that could reasonably influence a stock's price or an investor's decision.
Margin of safety
Margin of safety is the gap between a stock's estimated intrinsic value and a lower price you pay.