Q. Which of the following is / are correct statements about market capitalization?

1. It is total value of authorized shares of a publicly traded company
2. It is a robust indicator of economic growth
3. It is a measure of investors’ wealth

Select the correct option from the codes given below:
Answer: Only 3
Notes: Market capitalization (or market cap) is the total value of the issued shares of a publicly traded company; it is equal to the share price times the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company’s net worth and is a determining factor in some forms of stock valuation. It’s a measure of investor’s health.