The market capitalization:
1. is total value of authorized shares of a publicly traded company
2. is a robust indicator of economic growth
3. is a measure of investors’ wealth
Which among the above is / are correct statements?
Market capitalization (or market cap) is the total value of the issued shares of a publicly traded company; it is equal to the share price times the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company’s net worth and is a determining factor in some forms of stock valuation. It’s a measure of investor’s health.
This question is a part of GKToday's Integrated IAS General Studies Module