FTB-C000143 / Formula component

Market Capitalization

Market capitalization is a security or company's equity value measure based on price multiplied by a declared share count.

Also known asmarket capfull market capitalization

Foundation Formula defined 6 linked topicsPublished

Definitions

In plain terms

A price of 20 applied to 10 million declared shares gives a market capitalization of 200 million in the price currency.

Technical

The measure requires security and share-class scope, eligible price and timestamp, share-count definition and effective date, currency, and treatment of multiple classes.

Scope

It is not enterprise value, book value, free-float capitalization, or a guaranteed transaction value.

Formula

MC = P * Q
LaTeX: MC=PQ
SymbolMeaningUnit
Peligible price per sharecurrency per share
Qdeclared shares outstandingshares

Output unit: currency

Examples

  • A governed index record identifies market capitalization with its applicable methodology version, effective time, source, and units.

Common misconceptions

  • Market Capitalization does not have one universal implementation without the named index methodology, data cutoff, and governance context.

Concept relationships

Prerequisites

Contrasts with

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D03-F01-A02 Important
  • D03-F01-A05 Important
  • D03-F02-A02 Primary
  • D03-F02-A03 Prerequisite
  • D03-F02-A05 Prerequisite
  • D03-F06-A03 Prerequisite

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.