Come learn all about market capitalization and how traders might (or might not!) use it.

Video Notes

What is Market Capitalization?

-Measure of the size of a company

-Measure of the TOTAL VALUE of a company

How is it calculated?

Price per share x # of shares outstanding

$50 stock price x 1 million shares outstanding = $50 million

Stock price increases = market cap rises

Stock splits = increases # of shares outstanding

Small Caps: < $2 billion (Russell 2000)

Mid-Caps: $2 billion to $10 billion

Large-Caps: > $10 billion (S&P 500)

You can measure the market capitalization of an entire INDEX or Stock Exchange

Does anybody know where to find the latest and historical data from the last 10 years of the total market cap of the NYSE? I looked on their webpage but only found it until mid-2018. I am trying to find a pattern on how total market cap number behaves prior a market downturn. What do I expect to find? 1) If Total Market Cap decreased say 2% before Sep 2008, how much it slowed down in Feb 2020 and see if there is any correlation in addition to our negative yield curve and QT. 2) If no market cap slowdown was observed prior downturn, might mean it took everybody by surprise 3) Total Market Cap is simply not correlated to any event prior to market downturn

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