Market Capitalization: Definition & Formula


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A certain company makes fake grass. It is currently selling 45,000 shares for $11.56 per share on the stock market. What is this company's market capitalization?

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1. A small company only has 500 shares for sale on the stock market. What is the current market capitalization for this little company if each share sells for $43.03?

2. In order for you to calculate the market capitalization of a company, you need to know its cost per share and what else?

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About This Quiz & Worksheet

The worksheet and quiz are available in case you want to assess your comprehension of market capitalization. You need to know how to use the market capitalization formula for the quiz.

Quiz & Worksheet Goals

Use these materials to gauge your knowledge of:

  • Parts needed to calculate the market capitalization of a company
  • Finding market capitalization for companies
  • The formula used to calculate market capitalization

Skills Practiced

If you use the quiz and corresponding worksheet, you can practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the lesson on market cap
  • Knowledge application - use your knowledge to answer questions about finding market capitalization
  • Information recall - access the knowledge you have gained about components of the market capitalization formula

Additional Learning

If you use the lesson called Market Capitalization: Definition & Formula, you can review more topics at your own pace. These include:

  • Examples of finding market capitalization
  • The meaning of market capitalization
  • Purpose of the stock market