Market Capitalisation
The Market Capitalisation of a publicly traded company is one measure of the company's market value, and is calculated by multiplying the current share price by the total number of shares that have been issued.
While the true market value is simply whatever someone is prepared to pay for the company during a takeover, the market capitalisation is a good estimate of value and is used by indices such as the FTSE 100 which measures the value of the 100 largest companies in the LSE Main Market.
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