HOW IS MARKET CAP CALCULATED

ACCORDING TO THE FINANCIAL INDUSTRY REGULATORY AUTHORITY, TO CALCULATE MARKET CAP, YOU TAKE THE TOTAL NUMBER OF A COMPANY’S OUTSTANDING SHARES AND MULTIPLY THAT VALUE BY THE COMPANY’S CURRENT STOCK PRICE. SO IF A COMPANY HAS 10 MILLION SHARES AND ITS CURRENT STOCK PRICE IS $50, THE MARKET CAPITALIZATION WOULD BE $500 MILLION.