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Options Glossary - Most Used Terms


Capitalization

Refers to the current value of a corporation's outstanding shares in dollars.

See Also:

Capital: The amount of money an individual or business has available.

Capitalization-Weighted Index: A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index.

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