Market Capitalisation

Trading Basics

Market Capitalisation

A company’s market capitalisation is the total value of all of its outstanding shares. This can be calculated by multiplying the current number of the company’s shares that are outstanding by the market value of one share; investors then use this figure to determine a company’s size.

Other Trading Basics

Backwardation

Backwardation occurs when a bid price exceeds the ask price.

This usually occurs when stock is suspended or under a share repurchase scheme.

It can also mean that a futures contract will trade at a higher price when it is coming close to expiring.

The opposite of backwardation is known as contango.

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