SIE practice questioneasyMarket Capitalization
Market capitalization is determined by:
- ANet profit margin
- BTotal annual dividends paid
- CTotal company revenue
- DMultiplying shares outstanding by price per share✓ Correct answer
Explanation
Why D — Multiplying shares outstanding by price per share
Market capitalization equals the stock's price times the number of shares outstanding. Dividends, revenue, and profit margin do not determine market cap.
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