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 * QMC=PQ| Symbol | Meaning | Unit |
|---|---|---|
P | eligible price per share | currency per share |
Q | declared shares outstanding | shares |
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
Where this concept is used
Evidence and governance
- 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.
- 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
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published