Page 97 - Flip Banks TG

APPENDIX 3 Definitions

Appendix 3

Definition

1. market capitalisation

Market capitalisation or market cap is the market value of a

company's issued share capital – in other words. the

number of shares multiplied by the current price of those

shares on the stock market. Companies are ranked as large-
cap, mid-cap and small-cap depending on their market

capitalisation (market cap), though the actual criteria for

classification depend on the market concerned.

2. current ratio

Current assets divided by current liabilities. A commonly

used measure of a company's liquidity, or its ability to meet

its short-term obligations. Companies in certain industries,

for instance where inventories are low, are quite

comfortable with low current ratios.