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To help us do that, we have developed the Best Stock Definitions page to help you understand and understand the stocks that are important to you and your investments.
Read More for this guide.
If you need more help understanding what the term “stock” means, read our article on How to Choose a Stock.
In this article, we will be focusing on what a stock is in the context of its market cap, and its historical price-performance.
This is important to understand, because this is how you should evaluate the performance of a stock when you are looking at its historical value.
We have included the historical price and volume of each stock in this article.
For example, the following chart shows the relative performance of two stocks, a pharmaceutical company and a sports company, over the past 30 years.
The blue line shows the historical value of each of the two stocks over this period.
The red line shows their market value over this time period.
We use this chart to show the relative value of the stocks over a short time period compared to their historical value, and the red line gives us a sense of how well each stock performed over this same period.
The stock is shown in green, and represents the value of its historical performance.
The chart above is an example of a “normal” market.
This means that a stock with a high historical price has a high current price.
The red line is an indication that the stock has been performing well over the time period, which indicates that it is performing at a higher relative value over the last 30 years than its historical average.
The market value of a company is equal to the amount of money that the company has in its accounts at the time of the market value calculation.
The greater the amount that the market is willing to pay for a stock, the more valuable the stock is.
This formula can be written as:where is the market price, the total market capitalization of the company, and is the number of shares outstanding.
The table below summarizes the average market cap of all publicly traded U.S. stocks, as well as the relative market value.
We have highlighted the stocks with the highest market cap.
The first chart above shows the average annual market cap for the Pharmaceutical company, which has an average annual value of $5.5 billion.
The next chart shows how the market for the pharmaceutical company has changed over the period.
This chart shows that the average price per share of the Pharmaceutical Company has increased by about 7% annually, from $1.27 to $2.21.
This indicates that the annual increase in the price per shares has been very high over the 30-year period.
When the stock was valued at $2, the average yearly increase in price per Share was $3.18, or nearly 20%.
In this case, the stock held a very good value for 30 years, which is very impressive.
The next chart below shows how many shares the Sports Company holds.
This company has an annual average price of $12.5 million.
The price per unit of the Sports company has increased to $4.11 per share, a number that is nearly 20% higher than the average daily price of the stock.
The Sports Company has a relatively low market value, which can be attributed to its relatively small market share.
The value of this company is about 15% of the overall market value (market cap) of the total U. S. stock market.
The last chart below gives a sense about the value per share that the Sports and Pharmaceutical companies have.
This stock has an estimated annual average market value that is $17.5 per share.
The following chart illustrates the relative price of each company over the same period of time.
The average price for the Sports was $2 per share in 2014, and for the Pharma was $4 per share last year.
The market for each of these stocks is about 20% larger than the overall stock market value in 2014.
The sports and pharmaceutical companies have the same market value per unit.
The values for each are very similar, but the Sports companies have a larger market cap and a higher price per common share.
Finally, the final chart shows what the relative volume of the three companies is.
The above graph shows that this stock has about 1.8 million shares outstanding, which represents a price per Common Share of $1,400.
If we assume that each of those shares is worth $1 per share at the end of the 30 year period, then the total shares outstanding of the sports and drug companies is $3,400, or about 14.8% of all shares in the U. States.
In this way, the two sports companies are much more valuable than the Pharmaceuticals.
In the next section, we’ll discuss how to value a stock using the relative size of the companies.
This section will focus on how to compare a stock’s relative market cap