How is "market capitalization" defined?

Market capitalization is defined as the total value of a company's outstanding shares of stock. This value is calculated by multiplying the current share price by the total number of outstanding shares. Market capitalization reflects the market's perception of a company's value and is a crucial metric for investors when assessing the size and financial health of a company. It indicates the aggregate value that investors are willing to pay for the company's equity in the market.

The other options provided represent different financial metrics but do not capture the essence of market capitalization. Total revenue refers to the income a company generates from its business operations, which does not account for the company's overall market value. The value of a company's assets minus its liabilities describes the company's net worth or equity, not its market capitalization. Lastly, the market price of a company's shares is a component of the calculation for market capitalization, but it alone does not represent the total value of the company. Thus, the correct understanding of market capitalization is crucial for evaluating investment opportunities and comparisons within the market.