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Community: Investing Wiki

Term Of The Hour

market capitalization calculation: Original post by Bryan Keythman of Demand Media The market value of a firm's equity, which differs from the accounting value of equity, is the total value of stockholders' ownership in the company based on the price investors are willing to pay for the company's stock on the open market. Because stockholders are entitled to a share of a company's future earnings, a company's market value rises and…

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