What Factors Affect a Market Cap?

The market value of a stock is also known as the "market value of a stock," the price at which a stock is traded on the market. The market value of a stock is formed on the stock market through the competitive buying and selling of buyers and sellers, and is a transaction price recognized by both buyers and sellers. There are many factors that determine and influence the market value of stocks, mainly including stock face value, net value, true value, and market supply and demand. Generally speaking, the stock market value is based on the face value of the starting point, based on the stock's net value and true value, formed by changes in the market supply and demand relationship. Among them, the stock value, the true value and the stock market value change in the same direction, the stock value of the stock value rises, the market value will inevitably increase; and the market supply and demand relationship mainly refers to the supply and demand of funds and the supply and demand of the stock itself. For example, the market has a sufficient supply of funds, and the strength of the funds to buy stocks will increase the market value of the stocks; on the other hand, if the supply of funds in the stock market is tight, the demand for funds will increase, the strength of the funds to buy stocks will weaken, and the shares sold With more people, the market value of stocks will fall. As another example, when the market capital relationship is unchanged, when the supply of stock increases and the demand is relatively small, the stock market value is easy to fall; otherwise, it is easy to rise. In addition, market interest rates, the degree of currency stability, socio-political and economic situations, and people's psychological factors all have important effects on the changes in stock market value. ^[1]

Stock market value

Market Capitalization (Market Cap) is a measurement company

The market value is the market value of the stock, and it can also be said to be the total value calculated from the market price of the stock. It includes the stock's

For example, the total market value of a portfolio is the sum of the market value of all stocks calculated at the price at a certain moment. If the investment portfolio (A, B, C, D, 1, 1, 1, 5), the current stock prices of A, B, C, D are 1.5 yuan, 3 yuan, 6 yuan and 2 yuan respectively, then this The market value of the portfolio is:

1.5 × 1 + 3 × 1 + 6 × 1 + 2 × 5 = 20.5 (yuan)

The total market value of a stock market is the sum of the market values of all stocks calculated at the closing price of a certain day.

For the convenience of future expressions, it is agreed to express the market value of an investment portfolio at t as a function of Ft (A, B, C, D ..., N1, N2, N3, N4 ...), where A, B, C, D, etc. are the names of the stocks, and N1, N2, N3, N4, etc. are the weights of the selected stocks.

Theorem: In stock investment, if the investment portfolio is the same, the investment return is equal.

Suppose that on the N day, the stock is purchased with an investment portfolio (A, B, C, D ..., N1, N2, N3, N4 ...), and it is thrown out on the P day. The investment return rate R is:

R = (Value at P-Day Selling-Value at N-Day Buying) / Value at N-Day Buying

= (FP (A, B, C, D ..., N1, N2, N3, N4 ...)-Fn (A, B, C, D ..., N1, N2, N3, N4 ...)) / Fn (A, B , C, D ..., N1, N2, N3, N4 ...)

When the weight of one portfolio is K times the weight of another, the market value of the former is K times the latter. In the above formula, the numerator and denominator are multiplied by K, and their values are still equal.

With the concept of portfolio and market value, it is easier to understand stock indexes. ^[4]

In general securities books, the expression of stock index is:

Stock index = coefficient × (the sum of the real-time market value of some stocks) / market value of the benchmark date The real-time market value of certain stocks is essentially the real-time market value of a portfolio. For the convenience of expression, this portfolio that is included in the index will be referred to as the index portfolio, and its market value at t is defined as Zt (A, B, C, D ..., N1, N2, N3, N4 ...) , Where A, B, C, D, etc. are stock names, and N1, N2, N3, N4, etc. are weights. In the above formula, the market value and coefficient of the reference date are both constant, and can be combined into a coefficient K. The mathematical expression of the stock index ZSt at time t is:

ZSt = K × Zt (A, B, C, D ..., N1, N2, N3, N4 ...) (1)

immediate

Market value management is based on value management and is an extension of value management. Value management is mainly dedicated to value creation, while market value management is not only committed to value creation, but also to value realization.

Value management is a management system based on maximizing shareholder value of the company, and a management system that emphasizes value creation. Companies focusing on shareholder value creation can effectively balance conflicting interests between different stakeholders. In other words, shareholder returns are paramount, because only by ensuring that shareholders can get sufficient returns can the company be favored by the capital market and obtain funds for sustainable development. Only other stakeholders can benefit from the company's sustainable development. ^[5]

The market value placement is a new share issue method for the secondary market investor's circulating market value, that is, 1,000 shares of subscription rights can be obtained for each 10,000 yuan of market value of the shares, and then the participation is confirmed by the way of entrustment and lottery winning. Consistent with the winning number, and the account has sufficient funds, the winning amount will be deducted from the account when debiting, and the winning stock will be entered into the account the night before the listing. ^[6]

Market value adjustment, also known as mark to market (English: Mark to market, abbreviated as MTM ). Within each period of reporting data, such as the month in which the quarterly report is made, the value of the securities held by the company is measured according to the market value, and the corresponding accounts are adjusted.

Mark-to-market; Mark-to-market: An accounting procedure that calculates the market value of margin and futures trading accounts on a daily basis.

1. Calculate the margin trading account balance based on the stock market value to determine whether investors need additional margin;
2. Track the market value of futures trading contracts daily to determine whether investors need additional margin;
3. The value of the mutual fund's shares is adjusted daily according to the market value of the portfolio so that investors can join and withdraw from the fund.