Which of the following accurately describes how market capitalization is

determined?

O

A. The trading volume of a stock is divided by the number of

shareholders

B. The total value of all of the company's assets is calculated

C. The number of shares is multiplied by the price of each share

D. The annual profits are divided among all stockholders

Answer: C

Explanation: The number of shares is multiplied by the price of each share

Market capitalization is determined by the multiplication of share numbers with each share price.

Explanation:

The value we get by the multiplication of share numbers and share price is known as Capitalization in the Market or market value. The company value is shown by the capitalization of that company.

There are three capitalizations - Micro, small and mid to determine the market value of a company. It can be calculated, for example - by calculating the share number of 1 billion and multiplying it with the price of 10 billion per share.