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market cap |
Also found in: Financial, Wikipedia, Hutchinson | 0.09 sec. |
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(market CAPitalization) The sum derived from the current stock price per share times the total number of shares outstanding. Although the market cap of a company is an indication of the value of the company, it is only a temporary metric based on the current stock market. The true value of the company (its profits, product positioning, balance sheet, etc.) may not be reflected in the market cap. Of course, the perfect example occurred during the dot-com explosion of the late 1990s, when the market caps of many companies that never made a dime in profit rose to astronomical heights. Conversely, a company can be doing well, but still have a low market cap if its products and reputation have not caught the fancy of the masses. |
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? Mentioned in | ? References in periodicals archive | |
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The companies, which range in market cap from just over $200 million to nearly $10 billion, specialize in a broad range of properties -from health care institutions to trophy office buildings to storage facilities. A hedge fund manager typically gets a 20 percent cut of the increase in the market cap of the fund's holdings. The company offered its 20 million shares at a price range of $9 to $11, resulting in a market cap of $200 million. |
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