Tip of the day – Market Capitalisation

Market capitalisation refers to the total pound market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to using sales or total asset figures.

Using market capitalisation to show the size of a company is important because company size is a basic determinant of various characteristics in which investors are interested, including risk. It is also easy to calculate. A company with 20 million shares selling at £100 a share would have a market cap of £2 billion.

Tip of the day – Staying Relevant

An article in Harvard Business Review from November 2017 entitled “Why Gen-X CEO Hired a Millennial to Help Him Keep a Learning Mindset” provided a fascinating but light hearted look at the generation gap in the workplace.

A summary of the article circulated by HBR read:

It will happen to all of us someday: A younger generation enters the workforce and becomes the most sought-after consumers, and the rest of us feel left behind. One way to keep up is to ask a younger colleague to mentor you. This is especially important when it comes to technology, since the best tools for the job may be ones you haven’t heard about. Ask your younger mentor what trends they’re noticing and what new technologies they’re experimenting with. Your junior [colleague] can also help you avoid dating yourself. It’s easy for older workers to start saying things like, “Back in my day…,” but that will make you seem less relevant. Ask your mentor to point out when you’re referring to the past too often. It’s better for someone you trust to mention it than for customers or colleagues to secretly think it.

We all know someone who could benefit from this article…


The article is by John Barrows and HBR subscribers can read it here.