Market capitalization is one of the most basic concepts when looking at resource stocks. It is simply a function of the share price multiplied by the shares outstanding.
Many young investors think junior mining stocks are cheap because they have low share prices (penny stocks), this isn’t necessarily true as companies can have the same share price but widely vary in the number of shares outstanding (100M vs 1,000M) which has a huge impact on the market cap (valuation of the company).
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