Stock Market Capitalization
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Questions and Answers

The market capitalization of a company is calculated by subtracting the number of outstanding shares from the total value of the company.

False

Mid-cap companies tend to have stable revenue streams and a large, diverse investor base.

False

The market capitalization of a company is used to categorize its target markets.

False

Small-cap companies tend to have less volatility in their stock prices and earnings.

<p>False</p> Signup and view all the answers

Mega-cap companies have smaller values than large-cap companies.

<p>False</p> Signup and view all the answers

What is market capitalization primarily used for in the Philippine Stock Exchange?

<p>To categorize companies based on their volatility</p> Signup and view all the answers

Which type of company is most likely to have a stable revenue stream and a large, diverse investor base?

<p>Large-cap company</p> Signup and view all the answers

What information can be gained by dividing the market capitalization by the number of outstanding shares?

<p>The market value per share</p> Signup and view all the answers

Which type of company tends to have greater fluctuations in stock prices and earnings?

<p>Small-cap company</p> Signup and view all the answers

What does the company's market capitalization primarily reflect?

<p>The company's market value</p> Signup and view all the answers

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