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The two theories of capitalization are as follows:-

1. Cost Theory

2. Earnings Theory

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13y ago

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What are the uses of capitalization?

you use capitalization at the beginning of sentences, the letter I, proper nouns, titles, and names.


When did market capitalization begin?

Market capitalization begins at the start of any company. It is calculated by multiplying outstanding shares by the current market price of one share.


What is nse freefloat capitalization?

Under the 'full-market capitalization' methodology, the total market capitalization of a company, irrespective of who is holding the shares, is taken into consideration for computation of an index. However, if instead of taking the total market capitalization, only the Free-float market capitalization of a company is considered for index calculation, it is called the Free-float methodology. Free-float market capitalization is defined as that proportion of total shares issued by the company which are readily available for trading in the market. It generally excludes promoters' holding, government holding, strategic holding and other locked-in shares, which will not come to the market for trading in the normal course. Thus, the market capitalization of each company in a Free-float index is reduced to the extent of its Free-float available in the market.


How does a company's revenue compare to its market capitalization?

A company's revenue is the total amount of money it earns from selling goods or services, while its market capitalization is the total value of all its outstanding shares of stock. Revenue is a measure of a company's sales, while market capitalization reflects the overall value of the company as perceived by investors. In general, a company's market capitalization is typically higher than its revenue, as it takes into account factors such as profitability, growth potential, and market sentiment.


What does a company's market capitalization represent?

the price of a single share of stock

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