™50 million shares at $40 imply $2 billion equity market value; a $40 share price alone says little about company size.
Stocks
Market capitalization
The market value of a company’s equity: current share price multiplied by shares outstanding.
Plain-English context
Put the definition to work.
Use the relevant classes and current shares. Share price alone and weighted-average EPS shares do not necessarily give current market cap.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. NYU Stern — Valuation teaching material