Hacker News Reader

The trillion dollar mark is an artificial one for sure. But the market capitalization is a good proxy for the financial power of a company.

It's basically what the market values the entire company to be worth. If an alien has $1 trillion dollars, it can theoretically buy Apple (if the shareholders are willing to sell, and if the US regulatory agencies would approve the acquisition.)

Because investing has become integral in personal finance and market cap gives an estimate of a company's value, room to grow, etc.

I appreciate how you state that investing has become an internal part of personal finance. I agree with you, but unfortunately nobody taught us this where I am from.

Same for me, other than tidbits I got from my parents occasionally. Like many of the important things I learned in life, I had to teach myself.

But for investing the market cap is irrelevant, the stock price development is relevant, dividends are relevant, interests are relevant. There are a lot more indicators which are more relevant if you want to invest in a company or not than the market cap.

it’s one number that’s easy to get understand.

easier to understand than revenue?