This is for new traders.
$AMD(AMD.US) is currently trading at 323 while $Apple(AAPL.US) is at 270. That does not mean AMD is the bigger company.Think of the market as a pie. A company can cut that pie into ten slices or ten billion slices. The stock price is just the cost of one single slice. Apple has billions more slices in the market which makes it a 4 trillion dollar company. Check float to see how many slices are available.Market Cap is the total value of every slice combined and it is the only number that matters for size. Always multiply the share price by the total number of slices to get the market cap.I posted this because a new trader(friend of mine) asked me why is $Micron Tech(MU.US) a bigger business than $NVIDIA(NVDA.US). It's not, Nvidia is much much bigger. Hope it helps!The copyright of this article belongs to the original author/organization.
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