Monday, May 19, 2008

Buisness terminology

market capitalization:
Market capitalization is the market value of the equity of the company. If I put it simply it is nothing but the number of outstanding shares multiplied by the market price of each share of the company.
Market capitalization fluctuates accordingly with the movement of share prices, as share prices always moves up and down.

Blue chip:
Blue chip is a large, well established and financially sound company with an impressive record of earnings and dividends. The price volatility of this kind of a company’s share is moderate.

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