What is Market Capitalization?

What is market capitalization or market cap? A lot of people make mistakes when they look at market cap as the same thing as the real value of a business. The actual value of a business could be vastly different from what people are paying. Watch my video to learn more about how market cap relates to Rule #1 Investing.

The following video is part of our "Rule #1 Investing” series, in which founder, contributor and investor Phil Town discusses topics and principles from the world of investing.

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[exdividend]

Thanks for the great explanation :), first video that popped up when I searched for the definition of this market cap term.

[idealbrandmarketing]

Can you make a video of how cryptocurrency applies. Because it's a currency it seems to me that market cap is real dollars invested or perhaps not because of the value placed on the technology.?!?

[zenBoy]

Thanks Phil! Would you say that companies with a small market cap are riskier than those with a huge one?

[locdo]

Does company share buyback decrease market cap?

[ronnymohdomar]

Market Capitalization is just public evaluation value of the company