Stock Market Terms

Understanding "Market Cap:" How it Drives the Stock Market

Have you ever wondered how the stock market works and why certain companies have a greater impact on its movements? One crucial factor in determining a company's influence is its market capitalization. In this article, we'll delve into the concept of market capitalization, its significance in driving the stock market, and how it can be understood using a relatable analogy involving purses. So, let's explore the world of market capitalization and unlock its secrets.