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SIE: Equity Securities
SIE practice questioneasyMarket Capitalization

Market capitalization is determined by:

  1. ANet profit margin
  2. BTotal annual dividends paid
  3. CTotal company revenue
  4. DMultiplying shares outstanding by price per share✓ Correct answer
Explanation

Why DMultiplying 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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