Final answer:
A firm's market capitalization is calculated by multiplying a stock's price times its number of outstanding shares.
Step-by-step explanation:
A firm's market capitalization is calculated by multiplying a stock's price times its number of outstanding shares.
Market capitalization is the total value of a company's outstanding shares of stock. It is calculated by multiplying the current trading price of a stock by the total number of shares outstanding.
For example, if a company's stock is trading at $50 per share and it has 1 million outstanding shares, the market capitalization would be $50 million.