Question

What is market capitalization and how market capitalization related to airline business

150words

Answer 1

Answer :- Market Capitalisation is just the value of the shares of the company that are traded in the stock market. Market Capitalisation can be calculated by just doing the multiplication of the share price with the total number of the outstanding shares.

Market Capitalisation we generally say Market Cap . It is just indicate the size of the Company Means we say it is a very best meaure to judge the size of any company .

Nature of the Companies on the basis of Market Cap

• Mega-cap companies have a market cap in excess of $200 billion
• Large-cap companies have a market cap of $10 billion to $200 billion
• Mid-cap companies have a market cap of $2 billion to $10 billion
• Small-cap companies have a market cap of $300 million to $2 billion
• Micro-cap companies have a market cap of $50 million to $300 million

Now the  market capitalization is related to airline business as the Capital of the Airline business is divided into very small small parts and that each small part is called share which has its own value and when we multiply the total number of shares with the share price we simply get the market cap of that airline business. Now when the share price of airline business increase then the Market cap also increase and when the share price decrease the Market cap of airline business also decrease