SIE practice questionmediumMarket Cap
If XYZ Corporation has 5 million shares outstanding and a current price of $20 per share, what is its market capitalization?
- A$100 million✓ Correct answer
- B$25 million
- C$5 million
- D$1 billion
Explanation
Why A — $100 million
Market cap equals shares outstanding multiplied by share price: 5,000,000 × $20 = $100,000,000. Other answers use incorrect math or place value.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Equity Securities questions
- In the event of a corporate liquidation, which of the following holders is paid last?
- A company declares a 10% stock dividend. If an investor owns 100 shares, how many additional shares will they receive?
- Which of the following is a reason an investor might choose convertible preferred stock?
- Which statement is most accurate about stock rights?