Market capitalization
Paid up capital
Free-float market capitalization
Authorized share capital
Answer is Right!
Answer is Wrong!
The correct answer is: A. Market capitalization
Market capitalization is the total market value of a company’s outstanding shares. It is calculated by multiplying the number of shares outstanding by the current market price of one share.
The NIFTY and
SENSEX are two of the most popular stock indices in India. The NIFTY is a 50-share index of the National Stock Exchange of India, while the SENSEX is a 30-share index of the Bombay Stock Exchange. Both indices are calculated on the basis of market capitalization.Paid-up capital is the amount of money that has been paid by shareholders for their shares in a company. Authorized share capital is the maximum number of shares that a company is allowed to issue. Free-float market capitalization is the market capitalization of a company’s shares that are freely available for trading.
Here is a brief explanation of each option:
- Market capitalization: Market capitalization is the total market value of a company’s outstanding shares. It is calculated by multiplying the number of shares outstanding by the current market price of one share.
- Paid-up capital: Paid-up capital is the amount of money that has been paid by shareholders for their shares in a company.
- Authorized share capital: Authorized share capital is the maximum number of shares that a company is allowed to issue.
- Free-float market capitalization: Free-float market capitalization is the market capitalization of a company’s shares that are freely available for trading.