| The market value of a quoted company, calculated by multiplying its share price as quoted on an exchange by the number of shares in issue. For example, company A has 120m shares in issue. The current market price is 96p. The market capitalisation is a shade over œ115m. Market caps are important as some of the most important indices have their constituent companies based on them. The FTSE 100, for example, includes the UKs largest 100 companies at each quarterly cut-off point. The FT30 is the UKs oldest index dating back to 1935.
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