{"id":57590,"date":"2026-10-23T17:00:00","date_gmt":"2026-10-23T15:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=57590"},"modified":"2026-10-23T12:21:16","modified_gmt":"2026-10-23T10:21:16","slug":"market-capitalization-map-power","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/market-capitalization-map-power\/","title":{"rendered":"Market capitalisation: the map of power"},"content":{"rendered":"<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <h3><b>Nvidia is worth more than five trillion dollars on the stock market. Apple is approaching five. Alphabet exceeds four. But what does it really mean for a company to be \u201cworth\u201d this amount?<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The answer takes us to one of the most widely used concepts in financial markets: <\/span><b>market capitalisation<\/b><span style=\"font-weight: 400;\">. Understanding it allows us <\/span><b>to compare companies, interpret indices and discover where a large part of the world\u2019s capital is concentrated today<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>A share price does not tell us how large a company is<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Imagine two companies. The shares of the first are trading at 500 dollars and those of the second at 50. We might think that the first is ten times more valuable. <\/span><b>That would be a mistake<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To know what value the market assigns to a company, we also need to know how many shares it has in circulation. <\/span><b>The formula is simple<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center;\"><b>Market capitalisation = price of one share \u00d7 number of shares outstanding<\/b><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">This is also the definition used by the <\/span><a href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/glossary\/market-capitalization\"><span style=\"font-weight: 400;\">United States Securities and Exchange Commission<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>If a company has 1 billion shares and each one trades at 100 dollars, its market capitalisation is 100 billion dollars<\/b><span style=\"font-weight: 400;\">. This does not mean that the company has this money in the bank. Nor is it its turnover, profits or the value of its assets. <\/span><b>It is the value that the market assigns to all of its shares at a given moment<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This value also incorporates <\/span><b>the future anticipated by investors. Growth, profits, technology, brand or competition can change it<\/b><span style=\"font-weight: 400;\">. This helps to explain Nvidia\u2019s rise: the market does not only value the chips it sells today, but also the role it could play if demand for artificial intelligence infrastructure continues to increase.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Why is it so important?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Market capitalisation makes it possible to compare the stock market size of companies and commonly classify them as <\/span><b>small-, mid- and large-cap companies<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also determines the weight of many companies <\/span><b>within indices<\/b><span style=\"font-weight: 400;\">. The calculation is often adjusted for<\/span><b> free float<\/b><span style=\"font-weight: 400;\">, that is, <\/span><b>the shares actually available on the market<\/b><span style=\"font-weight: 400;\">. <\/span><a href=\"https:\/\/www.spglobal.com\/spdji\/en\/research-insights\/index-literacy\/methodology-matters\/\"><span style=\"font-weight: 400;\">S&amp;P Dow Jones Indices<\/span><\/a><span style=\"font-weight: 400;\"> uses this methodology in several of its indices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This has an important consequence: <\/span><b>a few giant companies can influence the performance of an entire index<\/b><span style=\"font-weight: 400;\">. Therefore, the fact that \u201cthe stock market is rising\u201d does not necessarily mean that most of the companies that make it up are doing so.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can also create a false sense of diversification. A fund may invest in dozens or hundreds of companies, but if the largest ones account for a large share of the index, much of the result <\/span><b>will continue to depend on a small group<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>When market capitalisation becomes power<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A high stock market valuation <\/span><b>can also provide competitive advantages<\/b><span style=\"font-weight: 400;\">. <\/span><b>The shares of a large company can function as a powerful currency<\/b><span style=\"font-weight: 400;\">. They can be used to buy other companies, compensate employees or raise new capital. These corporations also tend to have more resources to invest in research, infrastructure and international expansion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Being large can make it easier to keep growing. This is especially relevant <\/span><b>when capital is concentrated in the same sector<\/b><span style=\"font-weight: 400;\">. <\/span><b>Large technology companies<\/b><span style=\"font-weight: 400;\"> have enormous resources to hire talent, acquire competitors and accelerate the development of new technologies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But being large does <\/span><b>not mean being invulnerable<\/b><span style=\"font-weight: 400;\">. Market capitalisation depends directly on the share price. It can take decades to build a company and only a few trading sessions to lose a considerable part of its value.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>The stock market also tells us which sectors dominate<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Thirty or forty years ago, among the world\u2019s most valuable companies we found <\/span><b>oil companies, banks, industrial conglomerates, telecommunications companies and major manufacturers<\/b><span style=\"font-weight: 400;\">. Today, <\/span><b>semiconductors, artificial intelligence, software, cloud computing, digital platforms and electronics dominate<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, an important distinction must be made. <\/span><b>The market capitalisation of a sector is not equivalent to its weight in the real economy<\/b><span style=\"font-weight: 400;\">. To measure that weight, we must also look <\/span><b>at employment, turnover, investment, exports or added value<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Agriculture, construction or industry may be essential to the functioning of a country without having a comparable presence in financial markets. Market capitalisation therefore gives us a different picture: <\/span><b>it shows us where the value of listed companies is concentrated<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>The 11 most valuable listed companies in the world<\/b><\/h3>\n<p><b>As of 2 October 2026<\/b><span style=\"font-weight: 400;\">, the global ranking allows us to see this transformation at a glance. Since <\/span><b>share prices change every da<\/b><span style=\"font-weight: 400;\">y, the figures are a snapshot of the market on that date.<\/span><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component gallery\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-lg-10 offset-lg-1\">\n        <div id=\"slider_1\" class=\"carousel slide\" data-wrap=\"false\" data-interval=\"false\">\n          <div class=\"carousel-inner\">\n            <div class=\"carousel-item active\">\n              <img decoding=\"async\" class=\"d-block w-100\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2026\/10\/Mapa_Poder_GRAFICA_ENG-scaled.jpg\" alt=\"\">\n              <div class=\"carousel-caption\">\n                <p><span style=\"font-weight: 400;\">Source: <\/span><a href=\"https:\/\/companiesmarketcap.com\/\"><span style=\"font-weight: 400;\">CompaniesMarketCap<\/span><\/a><span style=\"font-weight: 400;\">. Data consulted on 2 October 2026.<\/span><\/p>\n\n              <\/div>\n            <\/div>\n          <\/div>\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <p><span style=\"font-weight: 400;\">The picture is revealing. <\/span><b>Nine of the eleven companies are American and none are from the European Union<\/b><span style=\"font-weight: 400;\">. Technology clearly dominates the ranking, while Saudi Aramco is the most visible exception among the major traditional sectors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The list also shows the extent to which <\/span><b>semiconductors have become a strategic industry. Nvidia, TSMC and Broadcom occupy three of the top eleven positions<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is not just a ranking of large companies. It is a map of <\/span><b>where global capital is concentrated today<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>A figure that explains a lot, but not everything<\/b><\/h3>\n<p><b>Market capitalisation makes it possible to compare companies, better understand indices and observe how value is distributed across markets. But it is not an absolute measure of a company\u2019s value<\/b><span style=\"font-weight: 400;\">. A company may have an enormous market capitalisation and be overvalued. Another may be highly profitable and have a much lower valuation. And sectors that are essential to the economy may have little presence on the stock market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why, when we see that a company is \u201cworth\u201d one trillion, two trillion or five trillion dollars, the interesting question is not only how it got there. <\/span><b>It is also what this scale allows it to do and what it tells us about the way global capital is being distributed<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At La Pla\u00e7a by 11Onze, we continue to explain the concepts that move the markets in order to understand what lies behind the big financial figures. Because <\/span><b>understanding how a company is valued also helps us understand where capital is heading<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Protecting savings with physical gold has been one of 11Onze&#8217;s greatest contributions to its community, and its range of products continues to expand. In today&#8217;s environment of market volatility, persistently high inflation and growing distrust in the banking system, gold is once again strengthening its role as a safe-haven asset. Discover <\/b><a href=\"https:\/\/www.11onze.cat\/or-llavor\/\"><b>Or Llavor<\/b><\/a><b> at <\/b><a href=\"https:\/\/www.11onze.cat\/preciosos-11onze\/\"><b>Preciosos 11Onze<\/b><\/a><b>.<\/b><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component cards\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-xl-8 offset-xl-2\">\n        <h1>If you would like to learn more about this topic, we recommend:<\/h1>\n        <div class=\"cards__wrapper\">\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/stock-indices\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2024\/06\/THUMBNAIL_index_bursari-768x512.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Finances<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>What are stock indices, and what are they for?<\/strong><\/p>\n              <span class=\"card-time\">6 min read<\/span>\n              <p class=\"card-text small\">If you are an investor, you must understand what&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/magnificent-seven\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2024\/03\/THUMBNAIL_Set_Magnifics-768x512.png\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Finances<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>The Magnificent Seven: who are they?<\/strong><\/p>\n              <span class=\"card-time\">6 min read<\/span>\n              <p class=\"card-text small\">The stock market performance of large US&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/gold-world-most-valuable-asset\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2024\/06\/THUMBNAIL_actiu_valuos-768x512.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Finances<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Gold is the world\u2019s most valuable asset<\/strong><\/p>\n              <span class=\"card-time\">6 min read<\/span>\n              <p class=\"card-text small\">The asset with the top market capitalisation is not&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n              <\/div>\n              <br>\n              <br>\n              <div class=\"cards__wrapper\">\n\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":71,"featured_media":57591,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[20],"class_list":["post-57590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-finances"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Market capitalisation: the map of power - 11Onze Comunitat Fintech<\/title>\n<meta name=\"description\" content=\"What is market capitalisation and why does it matter? 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