Market capitalization refers to how much a company is worth, as determined by the stock market. It is defined as the total market value of all issued shares.
To calculate a company’s market capitalization, multiply the number of shares outstanding by the current market value of one share.
Companies are usually divided according to market capitalization: large cap ($10 billion and above), mid cap ($2 billion to $10 billion) and small cap ($300 billion to $2 billion).
Market capitalization is often used to determine the size of a company and then to evaluate the company’s financial performance in comparison to other companies of different sizes.
When investing, companies with higher market caps are often safer investments as they represent more established companies with longer business histories.
This investment strategy uses selling short stocks and using the proceeds from the sale of those stocks to buy and hold the best rated stocks for a specified period of time.
The authorized reserve refers to the maximum number of shares that a publicly traded company may issue, as specified in its articles of incorporation or articles of association.
The Greater Fool Theory states that you can make money buying overpriced securities because there will usually be someone (i.e. a bigger fool) who is willing to pay an even higher price.
“Eventually, when the market runs out of fools, prices will start to go down.
The Halloween strategy suggests that investors should be fully invested in stocks from November to April and not invested in stocks from May to October.
Liar’s Poker is a multiplayer game in which players take turns betting on the total number of digits contained in the serial numbers of dollar bills held by players.