Ask a Fool: What is a Market Cap?

Before you go, we thought you'd like these...
Before you go close icon

In the spirit of better investing, and in celebration of the first annual Worldwide Invest Better Day (WWIBD) coming up on September 25, Motley Fool analysts will be answering user- and reader-submitted questions leading up to the big event. "Ask a Fool" anything, and we'll do our best to help you investbetter.

Market cap is one of the many metrics that investors can use to assess the size of a company. One share of the biggest company in the world, Apple (NAS: AAPL) , currently costs $668. To calculate Apple's market cap, simply multiply that number by the number of shares outstanding -- in this case, around 943 million -- and you get a market cap of roughly $630 billion. Watch the video below to learn more about calculating and interpreting a company's market cap.

 


Click the green button below to join the thousands of people celebrating Worldwide Invest Better Day on September 25!

The article Ask a Fool: What is a Market Cap? originally appeared on Fool.com.

Andrew Tonner owns shares of Apple. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners