Recently, we read in the newspapers that TCS overtook state-owned ONGC to become the India’s most-valued company on the basis of market capitalization. Which among the following statements is / are correct with reference to the market capitalization?
1. Market capitalization is the product of total number of shares and stock price
2. Market capitalization changes daily
Choose the correct option from the codes given below:
[C]Both 1 & 2
[D]Neither 1 nor 2
Both 1 & 2
Market capitalization or the value of a listed company is arrived at by multiplying the total number of its shares with its stock price on a particular day or time. This figure changes daily with the change in the stock price.