Market capitalization

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/market-capitalization

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the valuation formula?Market Capitalization = Current Share Price × Total Number of Outstanding Shares
2. How do you calculate a company's market capitalization?You multiply the price of one share by the total number of shares that exist. For example, if a share costs $10 and there are 1 million shares, the market cap is $10 million.
3. Why do investors care about market cap?Investors use market cap to see how big or small a company is. Bigger companies are usually steadier, while smaller ones can grow faster but are riskier. Knowing the size helps people decide where to put their money.

Equity: The ownership interest in a company, represented by shares of stock.
Stock exchange: A marketplace where securities like stocks and bonds are bought and sold.
Index fund: An investment fund that aims to replicate the performance of a specific market index.