Hi guys. Even though ive been doing stocks for a while now. I still dont know what market caps are for and how you can use the figures to determine anything.
From an educated guess, I think they are the total amount of shares issued on the market in $ terms? is that right?
How do people use it? Like ive seen ppl mention how theres heaps of volume despite having a low market cap or something.
Also how do you interpret the ALL ords index and the ASX200?
I hear ppl saying how the index is going to hit 3500 or something or how significant 4000 is.
I have no idea what any of that means. From a guess, im thinking that its essentially (just as the name suggests) an index of a certain group of stocks, like asx 200 and the value is something like OBV that changes depending on the net overal movement?
That was just a guess.
Can somebody clarify? And also give examples on how one would use the index and interpret it?