n NISM Certifications
VII NISM Series VII
Medium

Market capitalization is calculated as:

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Share price × Total earnings

  2. Share price × Total outstanding shares

    Correct answer

  3. C

    Total assets × Total liabilities

  4. D

    Total revenue × Share price

Why this is the answer

Market capitalization measures a company’s total equity value in the market, representing investor perception of its worth.

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