An important consideration for liquidity purposes. Whilst some businesses may show all the characteristics of an excellent investment, the small size of a business can sometimes prove a limiting investment factor. We only want to spend time researching businesses whose shares we can actually buy and sell.
Market Cap
= Number of shares * Price per share
Related articles
William McCubbin, Assistant Research Analyst at JM Finn, gives an overview of country risk.
Sir John Royden, Head of Research at JM Finn, gives an overview of cashflow matching.
Sir John Royden, Head of Research at JM Finn, gives an overview of Solvency II, legislation that governs the UK's insurance market.
If you like this article, follow us for more insights.
To receive more content like this subscribe today.