Capitalisation

Capitalisation represents the total value of a given company in the stockmarket. The capitalisation value of the firm is arrived at by multiplying the number of shares in issue by the company's share price. This market capitalisation obviously fluctuates as the share price moves up and down.

It's an important figure - if your company is worth £2 billion you'll have more credibility with bankers and other companies you want to take over than if you're a little minnow with hardly any value.

See Also: Online share dealing service Stockmarket Centre

Last Updated: June 2007 © Moneyextra.com

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