WHAT IS MARKET CAPITLIZATION? One Key To choosing Multi-Million Dollar Crypto or Stock.

(Interesting 4 minutes read)

Trade volume, beta, dividend, IPO, leverage, moving average, market shares, liquidity, volatility, ETF, Index and market Capitalization. These are terms that affect buyers and sellers sentiment in any market.

What do they mean?
How can they affect your investment decisions and profitability?

A lot!

Today, I want to take on the market capitalization. I will tell you what it means and how it affects the value of a Cryptocurrency or stock.

By the way, MTN Nigeria is selling her shares now. This information can help you make a right choice on thier offer.

MARKET CAP as it's called is simply the addition of total value of all that asset available in the market.

It's the number of asset units in circulation × unit price.

For example.

•Tesla was valued as a $1.02 trillion company because a unit share sells for about $1,000 and there are about a million Tesla shares in circulation. $1000 ×1,000,000 = $1 trillion.

By the way Elon owns 20% of that.
Thats why he's worth about $270Bn

•Bitcoin's M-cap is $1.2 Trillion too. That's 19 million BTC × $60k.

•Dangote cement: M-Cap is N4.7 trillion that's 17bn shares × N280 per share.

By the way too, Dangote cement has been paying N16 per share in dividend every year since 2018.

Aliko, the largest shareholder received N234bn in 2020 as dividends (like profit sharing) on his shares.
You fit buy too. Dividend na talk for another day.

You Gerrit?


HOW DOES IT AFFECT INVESTMENT

Every Investor wants the price to increase after he has brought an asset. So that when he sells he will make a profit or ROI.

The number of shares in circulation may not change easily. But the unit price changes very easily. That's where the importance of market cap arises.

Investors have confidence in high market cap assets for obvious reasons.

A large market cap means many people trust this company and have proven their trust by putting their money into the company or Crypto or asset.

Low market cap Companies have low market cap for two reasons.

1. It could be that the company or stock or Crypto is worthless and has not use. That's usually the reason most times.

2. People do not know about the asset yet or they are just going public (like at Alibaba's IPO) as they become available for investors to evaluate.

The market cap will begin to grow and this can happen in two ways.

i. the units in circulation could increase (by mining in Crypto or IPO/ PO in a company stock)

ii. The price will increase. This is what happens most times.

SMART INVESTOR ARE ESRLY

As a smart investor, you make money by seeing what others cannot see and doing what others are not doing now.

When you hear it in the news, I assure you, you are late.

Once a market cap of an asset becomes high, the chances of a rapid price increase becomes slim and unlikely because there is a limited amount of money in the industry. Prices reflective of the M-Cap can get to a maximum band (range).

The M-cap is the way to evaluate when an asset is not yet super saturated by other investors. You can't use price because the total units in circulation may be very high.

How do you know what's number is high or low?

You compare with other similar assets.

For MTN Ng shares, compare the M-cap of MTN ng to Airtel. MTN is selling at N169 now and Airtel is at N960 but that doesn't matter as much as the M-cap. If the M-cap of MTN is way lower than Airtel now, then the price will have to rise to balance it out. This is to reflect the true value of the MTN stock and the company.

Same for ETH, BNB, XRP, WKD etc.

The reason why some coins will never get to $1 is because if it gets to $1 the M-cap will be higher than BTC M-cap, which is never going to happen.

Yes, tell that guy who wants to kill you with ads for one shitcoin going to $50...
It's never going to happen!!!
Whether it's Wakanda or Shiba or doge.

Once the price causes the M-cap to go beyond its ideal value, smart investors begin to take profit and cause hype for you to buy what they know it's over priced.

NOW

Find a gap. Find that firm or Crypto or asset is not worth what similar assets are with. Don't use the price use the market cap.
For Crypto, use the coinmarketcap.

Your success!
I'm Philip, I am a finance expert.

One of the best threads on this platform.
Great work!! Financial Intelligence; difference btw a rich man and a poor man

TundeWX:
One of the best threads on this platform.
Great work!! Financial Intelligence; difference btw a rich man and a poor man

Thanks Tunde. Financial Intelligence is lacking in Africa. And that's why the credit system is also behind. Looks like Africa is only good for entertainment and population

philiancoop:


Thanks Tunde. Financial Intelligence is lacking in Africa. And that's why the credit system is also behind. Looks like Africa is only good for entertainment and population

FACTS!!!
pls open a thread on bull stocks to invest in this 2022,the pros n cons with past history trends,that sorta analysis I'm very eager to invest,either local stocks or international....I feel that's one of the best ways to make money while you sleep.
Great job!!!

So what is your advice for a common man who does not know the interpretation of all what you have typed here? To buy the MTN share or not to buy?

Please answer in one word and straightforward.

philiancoop:
WHAT IS MARKET CAPITLIZATION? One Key To choosing Multi-Million Dollar Crypto or Stock.

(Interesting 4 minutes read)

Trade volume, beta, dividend, IPO, leverage, moving average, market shares, liquidity, volatility, ETF, Index and market Capitalization. These are terms that affect buyers and sellers sentiment in any market.

What do they mean?
How can they affect your investment decisions and profitability?

A lot!

Today, I want to take on the market capitalization. I will tell you what it means and how it affects the value of a Cryptocurrency or stock.

By the way, MTN Nigeria is selling her shares now. This information can help you make a right choice on thier offer.

MARKET CAP as it's called is simply the addition of total value of all that asset available in the market.

It's the number of asset units in circulation × unit price.

For example.

•Tesla was valued as a $1.02 trillion company because a unit share sells for about $1,000 and there are about a million Tesla shares in circulation. $1000 ×1,000,000 = $1 trillion.

By the way Elon owns 20% of that.
Thats why he's worth about $270Bn

•Bitcoin's M-cap is $1.2 Trillion too. That's 19 million BTC × $60k.

•Dangote cement: M-Cap is N4.7 trillion that's 17bn shares × N280 per share.

By the way too, Dangote cement has been paying N16 per share in dividend every year since 2018.

Aliko, the largest shareholder received N234bn in 2020 as dividends (like profit sharing) on his shares.
You fit buy too. Dividend na talk for another day.

You Gerrit?


HOW DOES IT AFFECT INVESTMENT

Every Investor wants the price to increase after he has brought an asset. So that when he sells he will make a profit or ROI.

The number of shares in circulation may not change easily. But the unit price changes very easily. That's where the importance of market cap arises.

Investors have confidence in high market cap assets for obvious reasons.

A large market cap means many people trust this company and have proven their trust by putting their money into the company or Crypto or asset.

Low market cap Companies have low market cap for two reasons.

1. It could be that the company or stock or Crypto is worthless and has not use. That's usually the reason most times.

2. People do not know about the asset yet or they are just going public (like at Alibaba's IPO) as they become available for investors to evaluate.

The market cap will begin to grow and this can happen in two ways.

i. the units in circulation could increase (by mining in Crypto or IPO/ PO in a company stock)

ii. The price will increase. This is what happens most times.

SMART INVESTOR ARE ESRLY

As a smart investor, you make money by seeing what others cannot see and doing what others are not doing now.

When you hear it in the news, I assure you, you are late.

Once a market cap of an asset becomes high, the chances of a rapid price increase becomes slim and unlikely because there is a limited amount of money in the industry. Prices reflective of the M-Cap can get to a maximum band (range).

The M-cap is the way to evaluate when an asset is not yet super saturated by other investors. You can't use price because the total units in circulation may be very high.

How do you know what's number is high or low?

You compare with other similar assets.

For MTN Ng shares, compare the M-cap of MTN ng to Airtel. MTN is selling at N169 now and Airtel is at N960 but that doesn't matter as much as the M-cap. If the M-cap of MTN is way lower than Airtel now, then the price will have to rise to balance it out. This is to reflect the true value of the MTN stock and the company.

Same for ETH, BNB, XRP, WKD etc.

The reason why some coins will never get to $1 is because if it gets to $1 the M-cap will be higher than BTC M-cap, which is never going to happen.

Yes, tell that guy who wants to kill you with ads for one shitcoin going to $50...
It's never going to happen!!!
Whether it's Wakanda or Shiba or doge.

Once the price causes the M-cap to go beyond its ideal value, smart investors begin to take profit and cause hype for you to buy what they know it's over priced.

NOW

Find a gap. Find that firm or Crypto or asset is not worth what similar assets are with. Don't use the price use the market cap.
For Crypto, use the coinmarketcap.

Your success!
I'm Philip, I am a finance expert.

Ultimate36:
So what is your advice for a common man who does not know the interpretation of all what you have typed here? To buy the MTN share or not to buy?

Please answer in one word and straightforward.

Buy

God bless you boss, have been sceptical about this MTN offering before now.

Now you just enlightened me.

Any prediction on %gain in the future, for a year (for example)??

Anyways, I just bought 300 units, Philiancoop, Shey I will not regret it like this??

Jamesrock:
Anyways, I just bought 300 units, Philiancoop, Shey I will not regret it like this??

Congratulations, you're now an investor.
That's how life begins, little steps to being Warren Buffet.
The stock market is always going up. On the long term, you'll benefit. Just pray war or any crises doesn't destabilize Nigeria sha