Answers: Chapter 13 - Evaluating Stocks: Looking At The Numbers


13.1: True or False. Market capitalization of a company can fluctuate from day-to-day due to changes in the stock price of the company. The correct answer is True

Market Capitalization = (# of Shares) x (Current Stock Price)

 

13.2: True or False. There are micro-cap companies among the 30 companies that make up the Dow Jones. The correct answer is False

The Dow is comprised of 30 large-cap or mega-cap stock companies.

 

13.3: The market capitalization of a company can be found in financial websites such as Yahoo!Finance and MarketWatch. For example, to find the market capitalization for The Walt Disney Company, do the following:

  1. Go to Yahoo!Finance and type in DIS in the search bar on the top of the page

  2. You should land on a "Summary" page where you will see the market cap  figure

  3. The direct link to this page can be found here: Link to Disney Market Capitalization Page