n NISM Certifications
XV NISM Series XV
Medium

Which of the following best describes ‘Market Capitalization’?

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

Options

  1. A

    Number of shares issued × Book Value per Share

  2. B

    Total revenue × Number of shares

  3. Number of shares × Market Price per Share

    Correct answer

  4. D

    Total assets – Liabilities

Why this is the answer

Market capitalization represents the total market value of a company’s outstanding shares, reflecting investor perception and size of the company. Other options do not correctly define market capitalization.

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