Shine trader limited reports：
What is stock market capitalization?
Capitalization of the equity market is the sum of the value of the whole equity market. The value is calculated by adding together the market capitalization of all the companies on the stock market to get the market capitalization of the entire market.
Stock market value is the total value of all the stocks that trade on the stock market.
It is the sum of individual stock values of all the stocks in the market.
Stock market value is used as a rough measure of the size of the economy, tracking the inflows and outflows of money from stocks to other markets and comparing the size of the stock market to other asset classes.
Because the value of individual companies is a moving target, stock market value is only a rough yardstick.
Understand stock market capitalization
Changes in the capitalization of equity markets are used to compare increases or decreases in overall market size. The measure is also used to compare the value of the stock market with that of other asset classes, such as the bond market or other sectors of the economy, including the real estate market.
Market value (or “market value”) is the total market value of a company’s outstanding shares, derived from its share price. So market value is calculated by multiplying the number of shares outstanding in a company by the current market price of a share. The investment community uses this number to determine the size of a company. A company’s size is a fundamental determinant of the various characteristics investors are interested in, such as risk or volatility. It’s also easy to calculate. For example, if a company sold 20 million outstanding shares at $100 each, it would have a market value of $2 billion.