PDSnet Glossary

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Definition

The current market price of a share multiplied by the number of shares that the company has in issue. The market capitalisation of a company is the value which the market gives it at any point in time. It is also the basis for the weighting of most indexes. The JSE indexes utilise the company's "free-float market capitalisation" where the free float is the number of issued shares which are generally available for trading. For example, a company's free float excludes shares held by overseas or non-South African investors, shares which are part of an employee share option scheme, any shares which are subject to any sort of lock-in, shares held by government or quasi-government organisations like the government pension fund and any shares which are held by the company's founder or their family. Every listed company's market capitalisation is given (in millions of rands) in your software.

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