The Bank of Princeton

Market Cap

The market capitalization (market cap) of a stock represents the total market value of a company's outstanding shares of stock. It's a key metric used to gauge a company's size and investment risk, and it can be an important factor in investment decisions.

Here's how it's calculated:

Market Cap = Number of Outstanding Shares × Current Share Price

Dividend Yield

The dividend yield is a financial ratio that measures the amount of cash dividends distributed to common shareholders relative to the market value per share. The dividend yield is represented as a percentage and can be calculated by dividing the dollar value of dividends paid in a given year per share of stock held by the dollar value of one share of stock.

Here's how it's calculated:

Dividend Yield = Annual Dividends per Share / Price per Share