Michael Ecke is a mortgage professional - NMLS # 1439805, entrepreneur, businessman, and founder of Prosperment. As a current employee of a Fortune 50 company, Michael is dedicated to ensuring the utmost attention to detail and quality control. Michael provides executive oversight and direction to Prosperment and its sister companies. Michael brings to his position the business foresight and acumen required as Prosperment continues its remarkable growth.
What is 'Market Capitalization'?
Market capitalization refers to the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.
Using market capitalization to show the size of a company is important because company size is a basic determinant of various characteristics in which investors are interested, including risk. It is also easy to calculate. A company with 20 million shares selling at $200 a share would have a market cap of $4 billion.