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    #1

    Question Circulation Market Capitalization

    Hi,

    I am looking for a noun.

    Here is the definition of Market Capitalization: https://en.wikipedia.org/wiki/Market_capitalization

    Market capitalization (market cap) is the market value at a point in time of the shares outstanding of a publicly traded company, being equal to the share price at that point of time times the number of shares outstanding.
    If I want to express how many shares can be bought or sold in the stock market, can I use the following nouns?

    A. Circulation Market Capitalization
    B. Circulation Market Value
    C. Current Market Capitalization
    D. Current Market Value
    E. (Other?)

    What is the proper noun/term commonly used in financial?
    Thanks.
    Last edited by fenglish; 03-Jul-2016 at 05:58. Reason: Update: What is the proper noun/term commonly used in financial?

  1. Raymott's Avatar
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    #2

    Re: Circulation Market Capitalization

    Market capitalization refers to the total amount of shares of a company multiplied by their price. But not all of those shares are actually on the market, because investors hold them long term. Are you looking for the word for the number of shares that are actually available on the market to be bought?

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    #3

    Re: Circulation Market Capitalization

    Yes.
    Last edited by Rover_KE; 03-Jul-2016 at 07:57.

  2. Raymott's Avatar
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    #4

    Re: Circulation Market Capitalization

    On the Australian market, that number would be called "Shares on offer". This number can change every millisecond or so. Another term is "Trading volume" which refers to the number of shares bought and sold in a certain period of time (usually a day). Naturally the number sold will equal the number bought.

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    #5

    Re: Circulation Market Capitalization

    Thanks.

    Trading Amount= Trading Volume * Share Price
    Market Capitalization = Trading Amount + [Sell-able Volume but hold by share owner * Share Price] + [Not Sell-able volume * Share Price]

    I think it should be like this, what are the commonly nouns for [Sell-able Volume but hold by share owner * Share Price] and [Not Sell-able volume * Share Price]?

    And what is the noun for "Trading Amount + [Sell-able Volume but hold by share owner * Share Price]"?
    Last edited by Rover_KE; 03-Jul-2016 at 07:59. Reason: Deleting unnecessary quote.

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    #6

    Re: Circulation Market Capitalization

    I'm not sure about "trading amount".
    You can get all sorts of definitions here: http://www.investopedia.com/terms/s/shareturnover.asp

    Market capitalization isn't broken down like that, that I know of. It doesn't matter whether the shares are on offer or are being held. It's simply the total number by the latest price. The company has a fixed number of shares in circulation - it doesn't matter who owns them or if they've just been sold. It's that number by the latest price that makes the market cap.

    Also, considering the Trading Volume for one day, the shares would range in price, so you can't just multiply the daily volume by the last price.
    If a company has a million shares on issue, regardless of the number bought and sold one day (the trading volume), the market capitalization of the company at the end of that day is one million times the last sale price.

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