Illustration
Ten million shares at $20 imply $200 million; at $18, $180 million if the share count is unchanged.
FinFly Explains / Economy
A company’s market capitalisation
For publicly traded equity, multiply the share price by outstanding shares.
Not a cash balance
The $20 million difference is not a withdrawal from the company’s bank account. It is an equity valuation change.
Check inputs
Verify price date, share classes and share count. This is not charter capital or deposit-interest compounding.
Method
Primary sources
The explainer is checked against these institutional and industry sources. Links open the original material.