Capitalisation

Capitalisation represents the total value of a given company in the stockmarket. The capitalisation value of the firm is arrived at by multiplying the number of shares in issue by the companys share price. This market capitalisation obviously fluctuates as the share price moves up and down.

Its an important figure - if your company is worth £2 billion youll have more credibility with bankers and other companies you want to take over than if youre a little minnow with hardly any value.

See Also Online share dealing service and Stockmarket Centre

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2009-02-17 00:00:00 © Moneyextra.com