filmov
tv
Market Cap Explained | What Does Market Cap Mean?
Показать описание
Market cap is short for Market Capitalization and is equal to the price per share multiplied by the number of shares outstanding. If you only have the price per share and no other information then you won't get far! Market cap represents the "price tag" on the entire company.
Shares outstanding is the number of shares a company's ownership has been divided up into. Companies can have a widely varying number of shares outstanding and the number of shares outstanding can also change. Market cap is the true "price tag" on the entire company.
Successful investors determine what they think a company is worth in terms of its entirety and then compare that estimate of value to its "price tag" AKA market cap.
If your estimates of value are lower than the price tag then it might be a good buy because you're buying it for less than it's worth. If the market cap AKA "price tag" is higher than what you think it's worth, it's probably not a great investment because it's priced too expensively at this time.
Shares outstanding can change as companies do share buybacks, issue new shares, or do stock splits.
Companies do share buybacks as a way of returning value to shareholders (an alternative to paying a dividend) and this works by increasing your ownership percentage, since your ownership of the total increases as the total amount decreases. Issuing new shares does the opposite, your ownership percentage decreases as the total increases but the amount you own remains the same. However, the company you own does have more money as a result of the new share issuing. Stock splits have no fundamental impact on the company. A 5 for 1 stock split for example would be equivalent to having a $50 bill exchanged for 5 $10 bills. The value has not changed.
BEST INVESTING BOOKS
📚 The Little Book That Still Beats the Market
📚 The Outsiders
📚 100 Baggers
📚 The Complete Investor
📚 Richer, Wiser, Happier
📚 The Dhandho Investor
📚 Tao of Charlie Munger
📚 The Complete Financial History of Berkshire
🙋♂️ Watch Next to Keep Learning (YouTube Playlist):
🛎 SUBSCRIBE (Click to subscribe):
TIMESTAMPS
00:00 Introduction and what you will Learn
00:42 Market Cap definition
01:12 Explanation with 4 example companies
02:12 Explanation with 4 real-life companies
03:18 Conclusions about Market Cap
03:36 Testing your knowledge with a question
03:58 Shares Outstanding meaning
04:20 Share price and market cap daily fluctuation
04:49 How shares outstanding can change
05:20 Charts of shares outstanding over time for real companies
06:18 Stock Splits Explained
07:44 Market Cap VS Value
Special thanks to my incredibly beautiful, smart, and creative girlfriend, Stephanie, for her editing wizardry and creative insights and ideas. Although you do not see her speaking to you in the videos, believe me, she has poured her heart and soul into making this video and the videos on this channel. It's been a 50/50 effort. I don't want to even imagine what these videos would look like without her hard work and creative insights. Thank you.
Disclaimer:
These youtube videos and content are for entertainment purposes only. If stocks or companies are mentioned, Richard may have an ownership interest in them -- DO NOT make buying or selling decisions based on Richard’s videos. All information contained herein should not be construed as anything other than an opinion for entertainment purposes only. Information being provided may be outdated or inaccurate; it is your responsibility to verify all information.
No financial advice is being given nor is any other advice of any kind. You should consult with a qualified professional where appropriate and before any action is taken on this video. No liability or damages shall take place because of this video and/or content.
There is no express or implied representations or warranty with respect to the accuracy or completeness of the content of the videos, including any content, description, links, or resources shared, including those by third parties. Furthermore, all parties specifically disclaim any and all express or implied warranties of merchantability or fitness for a particular purpose. By watching this and all related videos, you agree to be bound by this disclaimer.
Shares outstanding is the number of shares a company's ownership has been divided up into. Companies can have a widely varying number of shares outstanding and the number of shares outstanding can also change. Market cap is the true "price tag" on the entire company.
Successful investors determine what they think a company is worth in terms of its entirety and then compare that estimate of value to its "price tag" AKA market cap.
If your estimates of value are lower than the price tag then it might be a good buy because you're buying it for less than it's worth. If the market cap AKA "price tag" is higher than what you think it's worth, it's probably not a great investment because it's priced too expensively at this time.
Shares outstanding can change as companies do share buybacks, issue new shares, or do stock splits.
Companies do share buybacks as a way of returning value to shareholders (an alternative to paying a dividend) and this works by increasing your ownership percentage, since your ownership of the total increases as the total amount decreases. Issuing new shares does the opposite, your ownership percentage decreases as the total increases but the amount you own remains the same. However, the company you own does have more money as a result of the new share issuing. Stock splits have no fundamental impact on the company. A 5 for 1 stock split for example would be equivalent to having a $50 bill exchanged for 5 $10 bills. The value has not changed.
BEST INVESTING BOOKS
📚 The Little Book That Still Beats the Market
📚 The Outsiders
📚 100 Baggers
📚 The Complete Investor
📚 Richer, Wiser, Happier
📚 The Dhandho Investor
📚 Tao of Charlie Munger
📚 The Complete Financial History of Berkshire
🙋♂️ Watch Next to Keep Learning (YouTube Playlist):
🛎 SUBSCRIBE (Click to subscribe):
TIMESTAMPS
00:00 Introduction and what you will Learn
00:42 Market Cap definition
01:12 Explanation with 4 example companies
02:12 Explanation with 4 real-life companies
03:18 Conclusions about Market Cap
03:36 Testing your knowledge with a question
03:58 Shares Outstanding meaning
04:20 Share price and market cap daily fluctuation
04:49 How shares outstanding can change
05:20 Charts of shares outstanding over time for real companies
06:18 Stock Splits Explained
07:44 Market Cap VS Value
Special thanks to my incredibly beautiful, smart, and creative girlfriend, Stephanie, for her editing wizardry and creative insights and ideas. Although you do not see her speaking to you in the videos, believe me, she has poured her heart and soul into making this video and the videos on this channel. It's been a 50/50 effort. I don't want to even imagine what these videos would look like without her hard work and creative insights. Thank you.
Disclaimer:
These youtube videos and content are for entertainment purposes only. If stocks or companies are mentioned, Richard may have an ownership interest in them -- DO NOT make buying or selling decisions based on Richard’s videos. All information contained herein should not be construed as anything other than an opinion for entertainment purposes only. Information being provided may be outdated or inaccurate; it is your responsibility to verify all information.
No financial advice is being given nor is any other advice of any kind. You should consult with a qualified professional where appropriate and before any action is taken on this video. No liability or damages shall take place because of this video and/or content.
There is no express or implied representations or warranty with respect to the accuracy or completeness of the content of the videos, including any content, description, links, or resources shared, including those by third parties. Furthermore, all parties specifically disclaim any and all express or implied warranties of merchantability or fitness for a particular purpose. By watching this and all related videos, you agree to be bound by this disclaimer.
0:02:04
Market Cap | by Wall Street Survivor
0:03:24
Why is Market Cap IMPORTANT In Crypto? (BEST Explanation in 3 minutes)
0:09:24
Market Cap Explained | What Does Market Cap Mean?
0:07:00
What is Market Cap? How to Find the Value of a Company
0:03:23
Market Cap Explained Under Four Minutes
0:04:41
What is Market Cap?
0:01:18
Understanding market cap in stocks
0:09:30
Market Cap Explained for Cryptocurrency (Easy Crypto Tutorial)
0:00:56
Unlocking Market Cap Secrets! Finance Explained #investing #education #stockmarket #finance
0:03:03
Fully Diluted Valuation VS Market Cap: What's The DIFFERENCE?
0:08:28
Market Capitalization explained
0:04:29
Estimating FUTURE VALUE Of Your Coins - MARKET CAP Explained!
0:01:49
What Is Market Cap vs Fully Diluted Market Cap? 📈
0:00:58
What is market cap? (Explained in under 60 seconds)
0:09:47
Stock Multiples: How to Tell When a Stock is Cheap/Expensive
0:08:44
What is Tokenomics? Understanding Crypto Fundamentals (Supply, Market Cap, Utility)
0:01:40
The Market Capitalization (Market Cap) Explained in One Minute: Stocks, Bitcoin & Cryptocurrenci...
0:00:58
Market Cap Explained in One Minute | One Minute Investing
0:03:03
What is a Crypto Market Cap?
0:02:41
Qu'est ce que la market cap ?
0:07:23
This is the Difference Between Market Cap and Enterprise Value
0:03:25
What is market capitalization aka market cap? Yahoo U explains:
0:10:17
Market Cap Explained in Hindi - #7 MASTER INVESTOR
0:00:40
Market Cap explained!
Комментарии