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SIE: Equity Securities
SIE practice questioneasyMarket Cap

Market capitalization is calculated by:

  1. AMultiplying annual dividends by share price.
  2. BAdding assets and liabilities.
  3. CDividing annual earnings by shares outstanding.
  4. DMultiplying the market price per share by total shares outstanding.✓ Correct answer
Explanation

Why DMultiplying the market price per share by total shares outstanding.

Market cap is price per share times shares outstanding. The other calculations do not yield market capitalization.

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