The total value of a firm's stock which can be computed by multiplying the number of shares outstanding by the market price per share is called what?
A) Market weighted
B) Market capitalization
C) Market beta
D) Market return

Question

Quizplus · Accepted Answer

Market capitalization is the total value of a firm's stock, and it is calculated by multiplying the number of shares outstanding by the current market price per share. Choice A, market weighted, refers to a method of calculating an index by weighting different stocks according to their market capitalization. Choices C and D, market beta and market return, refer to different measures of the risk and return associated with investing in the broader market or specific stocks.

The Total Value of a Firm's Stock Which Can Be