Which of the Following Expressions Accurately Describes Market Cap

question 36

Multiple Choice

Which of the following expressions accurately describes market cap?

• A) It is the product of the number of outstanding shares and the share price.
• B) It is the difference between the book value and the market value of a firm's assets.
• C) It is the ratio of a firm's equity finance and its debt finance.
• D) It is the difference between a firm's account receivables and account payables.

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Definitions:

Homestead

A dwelling with its land and buildings, occupied by the owner as a home and typically used for agriculture or similar purposes.

Great Britain

A sovereign state located off the north-western coast of continental Europe, comprising England, Scotland, and Wales.

Commercial Capitalism

An economic system characterized by private ownership of assets and a market-driven economy where goods are produced and sold for profit.

Financial Capitalism

An economic system where financial markets play a critical role in determining the allocation of capital, the pricing of assets, and the management of economic risks.