Smart Finance

Term

Market capitalization

What the market says a whole company is worth: price per share times number of shares. It is the honest way to compare two companies, because a share price on its own says nothing about size.

In pesos: A $500 MXN share is not more expensive than a $50 one: it depends on how many shares there are.

Where to go deeper

2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.