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Market Value of a company = No. of outstanding shares * Market price per share Assuming there are 100,000,000 share of XYZ limited and its price per share is $25, the market value of the XYZ limited is $ 2,500,000,000/-
To calculate the market cap of a particular company take the total number of outstanding shares times the current share price.Example:A company with 24 million outstanding shares trading at $10 a share = A company with a market cap of 240 million dollars.
Short Answer: NoIn the stock market you have a primary market and a secondary market. When a company goes public shares are initially sold on the primary market. During the IPO a company benefits from a high share price in that this is the capital that they will receive to fund their operations. After the initial IPO the stock begins trading on the secondary markets. In the secondary market the company does not directly profit from fluctuations in share price. The only exception being that a corporation would receive a benefit due to increase share prices in relation to any additional offerings or secondary stock offerings. The company will benefit from the higher share prices allowing the company to raise capital relatively cheap.
Investing in share market saves your tax and also makes you owner of shares of the company
The price investors pay for a share of the company is based primarily on the market value of the securities in the portfolio
Present market share of ITC Company
Gaurseeds company is the top most biggest market share market in Indian BSE or NSE.
Market Value of a company = No. of outstanding shares * Market price per share Assuming there are 100,000,000 share of XYZ limited and its price per share is $25, the market value of the XYZ limited is $ 2,500,000,000/-
If a company is publicly traded, the company itself does NOT decide the price of its shares, the market does. A share of stock trades for what an investor is willing to pay for it. Thus, if many investors are interested in buying a stock, its share price will rise. If there isn't much interest, its price will fall. Basic supply and demand.
yes, share market is a capital market but secondary market as company has no direct contact with the share holders. persons deals in sharemarket through stock exchanges.
Allscripts
We can check the growth of a company though market share and share price which is very much important for the sustainability.
By 2001 Carnival had a 35 percent market share and was a $16.3-billion company.
share of market share of heart share of mind
NOKIA
The share holders give the company money to function and also vote to decide the major events in the company which is usually explained in the proxy statement of the company.
i want to know how can i made stock exchange indexesCriteria's to select 50 or 30 Companies among NSE / BSE list of Companies· BSE Listed Companies as on 05 - 10 - 2011 is 5,085.· NSE Listed Companies as on 05 - 10 - 2011 is 1,552.ü A company must have one year history as a BSE listed company.ü A company should be among top 100 in BSE listed companies.ü A company should be a market leader in the particular sector.ü Each company should more than 0.5% of total market capitalization of Sensex.ü A company should have well past record.ü Company should be traded in each and every day of last one year (Except market holidays).After sort listing, we go to the calculation of BSE/NSE indexes. Before that we must know what is market capitalization. I would to share that too.Market capitalization:Market capitalization is total worth of a company (i.e. outstanding shares of a company). Outstanding shares are nothing but the shares which are not hold by the company or the shares which are hold by public, investors, employees etc.Formula:Market Capitalization = No of Shares Outstanding * Market price per shareTotal Market Capitalization = Market capitalization of NSE 50 / BSE 30 companies.Free Float Market CapitalizationThis is directly opposite to the Market capitalization. i.e. Except the Locked Shares (which includes promoter holdings, government holdings).Free float Market Capitalization = Share Price * (Shares Outstanding - Locked shares) ORFree float market capitalization =No. of outstanding share * market price of shareTotal Free float Market Capitalization = Free float Market capitalization of NSE 50 / BSE 30 companies.For Example:1.XYZ:Imagine XYZ one of the company (which is among NSE 50 or BSE 30).XYZ has 1000 shares among that government is holding 300 shares, promoter holding is 500 shares, and 200 shares are available in market and price of a share is Rs. 10.The calculation would be,· Market capitalization of the company is 1000 X 10 = 10,000.· Free float market capitalization of company is 200 X 10= 2,000.2.ZYX:ZYX has 2000 shares among that government is holding 500 shares, promoter holding is 500 shares, and 1000 shares are available in market and price of a share is Rs. 20.The calculation would be,· Market capitalization of the company is 2000 X 20 = 40,000.· Free float market capitalization of company is 1000 X 20= 20,000.Total Market CapitalizationTotal Market Capitalization = Market capitalization of NSE 50 / BSE 30 companies.Total Market Capitalization = XYZ + ZYX + … + ADD UP TO NSE 50 OR BSE 30.EXAMPLETotal Market Capitalization = 10,000 (XYZ) + 40,000 (ZYX) + … + ADD UP TO NSE 50 OR BSE 30.Therefore, Total Market Capitalization = 50,000Total Free float Market Capitalization = Free float Market capitalization of NSE 50 / BSE 30 companies.Total Free float Market Capitalization = XYZ + ZYX + …+ ADD UP TO NSE 50 OR BSE 30.Total Free float Market Capitalization = 2,000 (XYZ) + 20,000 (ZYX) +…+ ADD UP TO NSE 50 OR BSE 30.Therefore, Total Free float Market Capitalization = 22,000.Now let us calculate index value of NSE / BSEFormula for SENSEX calculation:SENSEX = (sum of free float market cap of 30 major companies of BSE) *Index value in 1978-79 / Market cap value in 1978-79.Assume market capitalization is 2000. Now, as per formula:SENSEX = 100000 X 100 / 2000 = 5000Value of Sensex is 5000.Formula for Nifty calculation:NIFTY = (Sum of free flow market cap of 50 major stocks of NSE) *Index value in 1995 / market cap value in 1995.Assuming the market capitalization value during 1995 is 20,000.NIFTY = 100000 x 1000 / 100000 = 1000.Value of Nifty is 1000.