A question on apple stock

[Apple Blogger]

I have this question of the stock market ... When apple shares rise or fall why does its market capacity gets reduced or increases too much more than other conpanies .. for eg. Yesterday the price of apple share was 400 and its market capacity was also 400B today the price rose to 424 and its market cap increased to 416B.. But when googles share at 900 with market capacity of 300 increased to 924.. It's market capacity increased only to 304B .. How and why does apple add so many billions to its market cap at the same rise .. ???

 

[kch50428]

"Market cap" is market capitalization... the total number of outstanding shares multiplied by the market price.

 

[Derrick4Real]

yes kch50428 is correct. You're terminology may be confusing you. Like he said the term is Market capitalization which is outstanding shares, that is the total number of shares the company has issues, multiplied by share price on the day.

(outstanding shares) x (share price) = Market capitalization

according to google finances rough numbers that would be as follows:

Google
(329.98M shares) x ($885.35 per share) = $292.15B Market cap

Apple
(908.44M shares) x ($440.99 per share) = $400.61B Market cap


So you can see since the market cap is the result of multiplying the two numbers whenever they increase the market cap will go up. But Apple as 3 times as many shares outstanding. A $24 price increase in google only get's multiplied 329 million times. A $24 move in Apple get's multiplied 908 million times. And the same works in reverse when the share price falls. So the change in market cap has to be a bit more drastic for apple.

 

[Apple Blogger]

Oh! So apple has issued much more shares than google.. Oh ok thank you very very much both of you..

 

[Derrick4Real]

You're welcome