what is the market value 1
What is the market value?
In this video you will learn: how to decide the scale of a company.
The concept and its calculation of the market value
Three sets of the company's classification
Strengths and weaknesses of Each set of companies.
The importance of diversified investment
You can find particular opportunities from companies with different sizes.
This course will introduce you different approaches.
To discoverthe advantages from specific scale companies.
First we will explain the concept of the market value and how to determine the scale of a company.
We use a common method called the market capitalization to calculate the value of the company, which can help to determine the scale, and it is also called market value.
The market value is calculated based on the total value of all the shares issued by the company.
Basically, it represents the total amount of money needed to buy the entire company based on the current value of the stock.
When the stock price of the company rises or falls, the market value changes accordingly.
The basic formula for calculating market value: the number of outstanding shares multiplied by the value of the stock.
For example, if the company holds 100, 000 shares to issue a stock which is worth ten dollars per share, the market value will be a million dollars.
The price of a single share of the company cannot accurately estimate the total value of the company.
The value of a company's stock may be low, but the total value may actually be higher than a company with a higher stock value, as it may have more outstanding shares.
Thus, the market value of the company allows you to make quick decisions and let you know how much the value of the company is.
There is no need to excessively detailed study or investigate the company’s balance sheet, the value of equity and debt.