10 Questions
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.
False
Mega-cap companies have smaller values than large-cap companies.
False
What is market capitalization primarily used for in the Philippine Stock Exchange?
To categorize companies based on their volatility
Which type of company is most likely to have a stable revenue stream and a large, diverse investor base?
Large-cap company
What information can be gained by dividing the market capitalization by the number of outstanding shares?
The market value per share
Which type of company tends to have greater fluctuations in stock prices and earnings?
Small-cap company
What does the company's market capitalization primarily reflect?
The company's market value
Understand the concept of market capitalization, its relation to the number of outstanding shares, and how it determines the volatility of a company's value. Learn how market capitalization categorizes companies and its implications on target markets.
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