market capitalization

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Definition:

Be a company whose shares traded freely (usually on an exchange-traded shares), resulting from the multiplication of price (market price) and the total number – including market capitalization or market value named: – The market capitalization (market capitalization, market short cap English) of the issued shares of the company.

Interpretation

The market capitalization of a company reflects the current market consensus on the value of the equity of a listed company (see also equity value). It results from supply and demand for its shares. The market capitalization is therefore significantly influenced by expectations in the stock market in the future profitability of the company, it thus reflects (all) market participants available information. To determine the (subjective) value of the company, however methods are used in company valuations, but usually in the Incorporate information that other market participants are not known or has not been processed are from the market. Also brought the market capitalization i.d.R. not the sum of money which would be needed to buy the entire company, because purchases have repercussions of a stock on the stock price (and expect shareholders with a takeover bid a premium (premium), which partly as a compensation can not publicly available information to be understood) .

Market capitalization as a weighting factor of stock market induces

The market capitalization is also used for weighting of individual stocks in a market index, it is usually not the entire market capitalization on the basis of all shares issued to reason, but only the free float market capitalization. This takes into account only the widely held shares, the shareholdings of major shareholders is not taken into account. This is the case for the DAX and other indices of market capitalization.

These are the 50 most valuable companies in the world

The stock market allows us a glimpse into the future, it says on the trading floor. If true, the future clearly speaks Chinese. While China still officially regarded as a developing country, are now five of the ten most valuable companies in the world from the People’s Republic. WELT ONLINE shows the global ranking.

Among the ten largest companies in the world already are five companies in China. Leading the stands – omen est omen – Petrochemical, the largest energy company in the most populous country with 1.3 billion inhabitants of the earth. The Beijing-based company, all shares, calculated, 356 billions of dollars (255 billion euros). The largest German companies, the car maker VW has a market capitalization of 75 billion €.

PetroChina has promoted the recent stock-King, the American rivals Exxon Mobil pushed off the throne. This makes itself heard: Exxon is a symbol of the rise of the United States to superpower. Founded in 1880 by the legendary John D. Rockefeller as Standard Oil Trust (The brand name “Esso” is derived from the initials SO), was the Society of decades the most powerful group in the world. Exxon is not the only corporate giant dethroned from the land of opportunity. was ousted from the top, the U.S. conglomerate General Electric – with its various branches of the banking business to the power plant construction business card in America.