Quote:
Originally Posted by Altwebdesign
AOL has a smaller market cap than yahoo?
Can someone elaborate on what that term means for me, does it mean AOL has less money or less market share ?
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Market Cap is the value of a business that is traded on the open market. You get a company's market cap by taking the price per share and multiplying it by the number of current outstanding or held shares.
It's one way to look at a company's value. It's not all encompasing, but in a nutshell it's what the company is currently worth on the open market. By saying AOL has a smaller market cap than yahoo it's saying that the value of aol is sig less than yahoo so they will need to bring in another entity to make the aquisition happen. In other words, they can't swing the cost on their own steam.
Hope that helps.