Capture the market capitalization of 3 companies of your choice
Before we think about the composition of your investment portfolio, let’s start with the basics. In this exercise you’ll get to grips with an important part of understanding the potential of any stock by calculating the market capitalization of some businesses of your choice.
Instructions
- Choose three publicly traded companies. These can be from any sector or industry that interests you.
- Ensure that the companies are listed on a major stock exchange (e.g., NYSE, NASDAQ, LSE).
Gather relevant information:
- Company Name and Ticker Symbol: Note down the full name and ticker symbol of each selected company.
- Stock Price: Find the current stock price of each company. You can obtain this information from financial news websites, stock market apps, or directly from the stock exchange's website.
- Number of Outstanding Shares: Look up the number of outstanding shares for each company. This information is usually available on the company’s website under investor relations or on financial information websites.
Calculate Market Capitalization
Market Capitalization is calculated using the formula:
Market Capitalization=Stock Price×Number of Outstanding Shares
Perform this calculation for each of your chosen companies.
Document Your Findings
Create a table or document to record the following details for each company:
- Company Name
- Ticker Symbol
- Stock Price (date and time noted)
- Number of Outstanding Shares
- Market Capitalization