NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Investing in Stocks (NISM XXI-A)
A company with 10 crore shares outstanding has a current market price of Rs 250 per share. What is its market capitalisation?
Market capitalisation is the number of shares outstanding multiplied by the market price per share. With 10 crore shares at Rs 250, it equals Rs 2,500 crore.
- ARs 250 crore
- BRs 2,500 croreCorrect
- CRs 25,000 crore
- DRs 25 crore
Explanation
Market capitalisation = shares outstanding x market price = 10 crore x Rs 250 = Rs 2,500 crore. Rs 250 crore results from using 1 crore shares, and the other options misplace the decimal.
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