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Quantitative Finance · Glossary

What is Share and market capitalisation?

Also known as: share · market capitalisation

Definition 8.1 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 8 — Shares, Corporate Actions and Indices

A share is a unit of ownership in a company, giving its holder a proportional claim on what the company distributes and, usually, a vote. With NN shares outstanding at price PP, the market capitalisation is NPNP.

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