Wednesday, December 16, 2009

Wordz & Jargonz- III



Sanguine: Of the color of blood; red; Cheerfully confident; optimistic. However, sanguinary means 'blood-thirsty'


Market capitalization/capitalisation (often market cap) is a measurement of the size of a business enterprise (corporation) equal to the share price times the number of shares outstanding of a public company. Capitalization could represent the public opinion of a company's net worth and is a determining factor in stock valuation
Traditionally, companies are divided into large-capmid-cap, and small-cap. Recently people have added 'micro-cap' and 'nano-cap'. People have rules of thumb to determine category from market capitalization. These need to be adjusted over time due to inflation, population change, and overall market valuation (for example, $1 billion was a large market cap in 1950 but it is not very large now), and they may be different for different countries. A rule of thumb may look like:



  • Large-cap: $10 billion–$200 billion
  • Mid-cap: $2 billion–$10 billion
  • Small-cap: $300 million–$2 billion
  • Micro-cap: $50 million-$300 million[4]
  • Nano-cap: Below $50 million
Different numbers are used by different indexes; there is no official definition of or general agreement about the exact cutoffs.

No comments:

Post a Comment