How to Understanding the Strategies for Increasing Stock Market Capitalization and Achieving High Growth in Public Companies

 Make thesis complete from abstract , keywords, until references about How to understand the profit from making the stock marketcap upper  and soon change the nomor one on big cap. so the people will know that public company was new hight growth.

Title: Understanding the Strategies for Increasing Stock Market Capitalization and Achieving High Growth in Public Companies

Abstract: The stock market capitalization of a public company is a critical indicator of its financial performance and growth potential. Increasing market capitalization can lead to higher investment from stakeholders, attracting new investors, and establishing the company's position as a market leader. This thesis aims to explore the strategies used by public companies to increase their stock market capitalization and achieve high growth. It also aims to understand how these companies can change the perception of the market, thereby becoming the top-ranked company in terms of market capitalization.

Keywords: stock market capitalization, public companies, growth, market leader, strategies

Introduction:



Here is a list of some important events and milestones in the history of stock market capitalization:

  1. 1860s: The New York Stock Exchange (NYSE) becomes the largest stock exchange in the world, with a market capitalization of $1 billion.
  2. 1920s: The market capitalization of the NYSE reaches $87 billion, reflecting the economic boom of the Roaring Twenties.
  3. 1970s: The introduction of electronic trading and increased international investment leads to a surge in market capitalization, with the NYSE surpassing $1 trillion in 1974.
  4. 1980s: The market capitalization of the Tokyo Stock Exchange (TSE) surpasses that of the NYSE, reflecting Japan's economic growth.
  5. 1990s: The dot-com bubble leads to a rapid increase in market capitalization, with the combined value of all U.S. stock markets reaching a record high of $30 trillion in 1999.
  6. 2000s: The bursting of the dot-com bubble and the global financial crisis lead to a significant decrease in market capitalization, with the value of global stock markets falling from $62 trillion in 2007 to $29 trillion in 2008.
  7. 2010s: The market capitalization of tech giants such as Apple and Amazon reaches record highs, contributing to a growth in the value of global stock markets to $85 trillion in 2019.
  8. 2020s: The COVID-19 pandemic leads to a brief but sharp drop in market capitalization in early 2020, followed by a quick recovery and continued growth in the value of global stock markets.

Note: The above list is not exhaustive and other events may have also played a significant role in the history of stock market capitalization.



Please find below a list of significant events and milestones in the history of market capitalization:

  1. 1602: The Dutch East India Company, established in 1602, becomes the first publicly traded company and had a market capitalization of over $7 trillion in today's currency.

  2. 1817: The New York Stock Exchange (NYSE) is established and begins trading stocks, leading to the emergence of a stock market and market capitalization.

  3. 1860s: The NYSE becomes the largest stock exchange in the world, with a market capitalization of $1 billion.

  4. 1920s: The market capitalization of the NYSE reaches $87 billion, reflecting the economic boom of the Roaring Twenties.

  5. 1970s: The introduction of electronic trading and increased international investment leads to a surge in market capitalization, with the NYSE surpassing $1 trillion in 1974.

  6. 1980s: The market capitalization of the Tokyo Stock Exchange (TSE) surpasses that of the NYSE, reflecting Japan's economic growth.

  7. 1990s: The dot-com bubble leads to a rapid increase in market capitalization, with the combined value of all U.S. stock markets reaching a record high of $30 trillion in 1999.

  8. 2000s: The bursting of the dot-com bubble and the global financial crisis lead to a significant decrease in market capitalization, with the value of global stock markets falling from $62 trillion in 2007 to $29 trillion in 2008.

  9. 2010s: The market capitalization of tech giants such as Apple and Amazon reaches record highs, contributing to a growth in the value of global stock markets to $85 trillion in 2019.

  10. 2020s: The COVID-19 pandemic leads to a brief but sharp drop in market capitalization in early 2020, followed by a quick recovery and continued growth in the value of global stock markets.

Note: The above list is not exhaustive and other events may have also played a significant role in the history of market capitalization.



Please find below a list of significant events and milestones in the history of public companies:

  1. 1602: The Dutch East India Company becomes the first publicly traded company in the world, issuing shares to the public to finance its activities.

  2. 1792: The Buttonwood Agreement is signed, creating the New York Stock Exchange (NYSE) and establishing a framework for trading stocks of public companies.

  3. 1811: The first Canadian public company, Bank of Montreal, is founded.

  4. 1856: The first publicly traded company in Japan, Tokyo Stock Exchange, is established.

  5. 1860s: Public companies become more common in Europe and the United States, as industrialization and infrastructure development create new opportunities for investment.

  6. 1920s: The number of publicly traded companies in the United States reaches a peak, with over 2,000 companies listed on the NYSE alone.

  7. 1930s-1940s: The Great Depression and World War II lead to a decline in the number of public companies, as many go bankrupt or are nationalized.

  8. 1950s-1960s: Economic growth and the rise of multinational corporations lead to a resurgence in public companies, with many becoming household names.

  9. 1970s-1980s: The introduction of computerized trading systems and increased regulation leads to further growth in the number of public companies.

  10. 1990s-2000s: The dot-com boom leads to a surge in the number of technology startups going public, with many becoming highly valued in a short period of time.

  11. 2010s-2020s: The rise of private equity and the growth of the gig economy lead to a decline in the number of public companies, with many opting to remain private or sell to larger companies.

Note: The above list is not exhaustive and other events may have also played a significant role in the history of public companies.



questions about market capitalization along with their answers:

  1. What is market capitalization?

Market capitalization, or market cap for short, is the total value of a company's outstanding shares of stock. It is calculated by multiplying the number of shares outstanding by the current market price of one share.

  1. How is market capitalization useful for investors?

Market capitalization is a useful metric for investors because it can give an indication of a company's size and its potential for growth. Generally, larger companies with higher market capitalizations are seen as more stable and less risky investments, while smaller companies with lower market capitalizations may have higher growth potential but also higher risk.

  1. What are the different categories of market capitalization?

Market capitalization can be categorized into three main groups: large-cap, mid-cap, and small-cap. Large-cap companies are those with a market capitalization of $10 billion or more, mid-cap companies have market capitalizations between $2 billion and $10 billion, and small-cap companies have market capitalizations under $2 billion.

  1. How does market capitalization impact stock performance?

Market capitalization can have a significant impact on a stock's performance. Large-cap companies with high market capitalizations tend to be more stable and less volatile, with lower potential for growth. Small-cap companies with lower market capitalizations may be riskier investments, but also have higher potential for growth and therefore potentially higher returns.

  1. Can market capitalization change over time?

Yes, market capitalization can change over time as a company's stock price and number of outstanding shares fluctuate. For example, if a company issues new shares of stock, its market capitalization will increase, while a decrease in stock price will decrease its market capitalization.

  1. How is market capitalization different from enterprise value?

Market capitalization only takes into account a company's outstanding shares of stock, while enterprise value takes into account both the market value of a company's equity and its debt. Enterprise value is often used in financial analysis as a more accurate representation of a company's value, since it accounts for its total capital structure.



Public companies often focus on increasing their stock market capitalization as a means of demonstrating their growth and success. Higher market capitalization can also lead to increased interest from investors, more significant investment opportunities, and an improved reputation in the marketplace. The objective of this thesis is to analyze the strategies used by public companies to achieve high growth and increase their stock market capitalization. Furthermore, this thesis will explore how these strategies can help public companies to become the top-ranked company in the market, thereby improving their brand value and perception.

Literature Review:



recent books that may be helpful in understanding strategies for increasing stock market capitalization and achieving high growth in public companies:

  1. "The Intelligent Investor: The Definitive Book on Value Investing" by Benjamin Graham - This classic book on value investing provides insights into how to identify undervalued stocks and invest for long-term growth.

  2. "The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit" by Aswath Damodaran - This book provides an introduction to the principles of valuation and offers strategies for identifying undervalued stocks and investing for long-term growth.

  3. "Value Investing: From Graham to Buffett and Beyond" by Bruce Greenwald, Judd Kahn, Paul D. Sonkin, and Michael van Biema - This book explores the strategies and principles of value investing and provides insights into the strategies used by successful investors like Warren Buffett.

  4. "The Stock Market Cash Flow: Four Pillars of Investing for Thriving in Today's Markets" by Andy Tanner - This book provides insights into how to invest for cash flow and long-term growth, using the four pillars of investing: cash flow, management, growth, and valuation.

  5. "High Growth Handbook" by Elad Gil - This book offers insights into the strategies used by successful high-growth companies, including how to build a team, how to scale a company, and how to achieve long-term growth and success.

  6. "The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses" by Eric Ries - This book offers insights into the strategies used by successful startups to achieve high growth, including how to innovate, test, and iterate to achieve success in a rapidly-changing market.

These books can provide valuable insights into the strategies used by successful investors and entrepreneurs to achieve high growth and increase stock market capitalization.



Studies suggest that public companies can use various strategies to increase their stock market capitalization. These strategies include increasing revenue and earnings growth, reducing costs, improving margins, entering new markets, developing innovative products, and investing in research and development. Additionally, many public companies focus on creating a strong brand image and reputation to attract investors and increase their market capitalization.

Methodology:



quadrant about market capitalization:

mathematica
| High Market Cap | Low Market Cap

------|-----------------|----------------- Growth| Top Performers | Emerging Stars |(Apple, Amazon) | (Zoom, Tesla) ------|-----------------|----------------- Value | Established Blue | Value Traps | Chip Companies |(GE, IBM)

In this quadrant, the companies are divided into four categories based on their market capitalization and growth/value metrics.

The top left quadrant represents companies with a high market capitalization and high growth, known as the top performers. These are typically companies that have shown consistent growth over time and have strong brand recognition, such as Apple and Amazon.

The top right quadrant represents companies with a low market capitalization and high growth, known as emerging stars. These companies may be relatively new to the market but have shown promising growth potential, such as Zoom and Tesla.

The bottom left quadrant represents companies with a high market capitalization and low growth, known as established blue chip companies. These companies may have reached a plateau in terms of growth, but are considered stable and reliable due to their long history and established market position. Examples include companies such as Microsoft and Intel.

The bottom right quadrant represents companies with a low market capitalization and low growth, known as value traps. These companies may appear cheap or undervalued, but are often struggling due to poor performance or financial difficulties. Examples include companies such as GE and IBM.

Of course, this quadrant is just one way to think about market capitalization and how it relates to growth and value. Different industries and sectors may have their own unique factors to consider, and individual companies can always defy categorization.



The methodology used in this thesis will involve a qualitative analysis of public companies that have successfully increased their market capitalization and achieved high growth. Data will be collected from various sources, including company reports, financial statements, news articles, and other relevant literature. The analysis will focus on the strategies used by these companies to achieve growth and increase their market capitalization.

Results:



public multinational corporations (MNCs) that can help for growing the market capitalization:

  1. Investment banks such as Goldman Sachs, Morgan Stanley, and J.P. Morgan can help companies raise capital through initial public offerings (IPOs) or secondary offerings, which can increase market capitalization.

  2. Technology companies such as Microsoft, Apple, and Google can provide innovative solutions and platforms that can help companies scale and grow their business, leading to higher market capitalization.

  3. Professional services firms such as Deloitte, PwC, and EY can provide strategic consulting services that can help companies optimize their operations and identify growth opportunities.

  4. Consumer goods companies such as Procter & Gamble, Unilever, and Nestle can help companies expand their customer base and improve brand recognition, leading to higher market capitalization.

  5. Energy companies such as ExxonMobil, BP, and Shell can provide access to resources and expertise in the energy sector, which can help companies develop and implement sustainable energy solutions and drive market capitalization growth.

  6. Pharmaceutical companies such as Pfizer, Johnson & Johnson, and Novartis can help companies develop new products and treatments, leading to higher market capitalization.

  7. Retail companies such as Walmart, Amazon, and Alibaba can provide access to large customer bases and distribution networks, which can help companies scale and grow their business and increase market capitalization.

These are just a few examples of the many ways that public MNCs can help companies grow their market capitalization.



strategies for increasing stock market capitalization and achieving high growth in public companies:

  1. Develop and execute a clear growth strategy: Companies need to have a clear vision and strategy for growth that aligns with their core competencies and differentiates them from competitors. They should focus on identifying and pursuing high-growth opportunities and continually evaluating and adjusting their strategy as needed.

  2. Invest in innovation: Innovation can be a powerful driver of growth and market capitalization. Companies should invest in research and development to create new products and services that meet evolving customer needs and improve their competitive position.

  3. Optimize operations: Companies should focus on optimizing their operations to improve efficiency and reduce costs. This can include streamlining processes, improving supply chain management, and leveraging technology to automate tasks.

  4. Expand into new markets: Companies can increase market capitalization by expanding into new geographic markets or by diversifying their product offerings. This can help companies reduce their reliance on a single market or product and increase their revenue potential.

  5. Build a strong brand: A strong brand can help companies build customer loyalty and increase market share. Companies should invest in building their brand through advertising, public relations, and social media marketing.

  6. Attract and retain top talent: Companies need to attract and retain top talent to drive growth and innovation. This can include offering competitive compensation packages, providing opportunities for career advancement, and creating a positive work culture.

  7. Communicate effectively with investors: Companies should communicate regularly and effectively with investors to keep them informed about the company's performance and growth prospects. This can include hosting earnings calls, issuing press releases, and maintaining an up-to-date investor relations website.

By implementing these strategies, companies can increase their market capitalization and achieve high growth over the long term.



The findings of this thesis reveal that public companies can achieve high growth and increase their market capitalization through various strategies. Companies that invest in research and development, innovate new products, and create a strong brand image tend to perform well in the stock market. Additionally, companies that enter new markets and reduce costs can also increase their market capitalization. The results also suggest that public companies that consistently perform well in the market can change the market's perception and become the top-ranked company in terms of market capitalization.

Conclusion:


There are a few reasons why people might trade in small cap low price stocks.

  • Potential for growth: Small cap stocks are typically younger and smaller companies that have the potential to grow rapidly. This can lead to significant gains for investors who are willing to take on the risk.
  • Lower share price: Small cap stocks often have lower share prices than large cap stocks. This makes them more affordable for investors who don't have a lot of money to invest.
  • Less competition: Small cap stocks are often less competitive than large cap stocks. This can make it easier for them to grow and succeed.

However, there are also some risks associated with trading in small cap low price stocks.

  • Higher volatility: Small cap stocks are typically more volatile than large cap stocks. This means that their prices can fluctuate more wildly, which can lead to losses for investors.
  • Less liquidity: Small cap stocks are often less liquid than large cap stocks. This means that it can be more difficult to buy and sell them, which can make it harder to exit a position if the stock price starts to fall.
  • Less information: There is often less information available about small cap stocks than about large cap stocks. This can make it more difficult for investors to make informed decisions about whether to buy or sell them.

Overall, trading in small cap low price stocks can be a risky proposition, but it can also be a rewarding one if investors are willing to do their research and take on the risk.

Here are some tips for trading in small cap low price stocks:

  • Do your research: Before you buy any stock, it's important to do your research and understand the company. This includes looking at the company's financial statements, reading analyst reports, and following news about the company.
  • Diversify your portfolio: Don't put all your eggs in one basket. When you're trading in small cap low price stocks, it's important to diversify your portfolio by investing in a variety of different companies. This will help to reduce your risk if one of the stocks in your portfolio loses value.
  • Use stop-loss orders: A stop-loss order is a type of order that tells your broker to sell a stock if it falls below a certain price. This can help you to limit your losses if the stock price starts to fall.
  • Be patient: Trading in small cap low price stocks can be a long-term investment strategy. Don't expect to get rich quick. Be patient and invest for the long term.



This thesis concludes that public companies can increase their stock market capitalization and achieve high growth through various strategies. These strategies include increasing revenue and earnings growth, reducing costs, entering new markets, developing innovative products, investing in research and development, and creating a strong brand image. Additionally, public companies that consistently perform well in the market can change the market's perception and become the top-ranked company in terms of market capitalization, which can lead to higher investment and more significant opportunities.



people who are considered leaders in the field of market capitalization:

  1. Warren Buffett - CEO of Berkshire Hathaway and one of the most successful investors of all time
  2. Elon Musk - CEO of Tesla, which has one of the highest market capitalizations of any automaker in the world
  3. Jeff Bezos - Founder and former CEO of Amazon, which has a massive market capitalization and is one of the largest companies in the world
  4. Satya Nadella - CEO of Microsoft, which has consistently grown its market capitalization over the years
  5. Mark Zuckerberg - Founder and CEO of Facebook, which has a large market capitalization and is one of the most successful social media companies in the world
  6. Larry Page and Sergey Brin - Co-founders of Google (now Alphabet), which has a massive market capitalization and dominates the search engine market
  7. Jamie Dimon - CEO of JPMorgan Chase, one of the largest banks in the world with a significant market capitalization
  8. Reed Hastings - Co-founder and CEO of Netflix, which has a high market capitalization and has disrupted the entertainment industry.

Please note that this is not an exhaustive list and there are many other people who are considered leaders in the field of market capitalization.




References:

  1. Gergaud, O., & Smeets, V. (2015). Stock market performance and corporate investment: A test of the Q theory. Journal of Corporate Finance, 35, 256-275.
  2. Haug, M., Hirschey, M., & Niemi, L. (2016). Corporate earnings management and stock market performance. Journal of Business Research, 69(9), 3319-3326.
  3. Hirschey, M., & Skiba, H. (2017). The impact of dividend changes on stock market performance. Review of Quantitative Finance and Accounting, 49(1), 195-215.
  1. Aswath Damodaran. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. John Wiley & Sons.

  2. Benjamin Graham, David Dodd, and Warren Buffett. (2008). Security Analysis: The Classic 1934 Edition. McGraw-Hill.

  3. Burton Malkiel. (2012). A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing. W. W. Norton & Company.

  4. Jay Ritter. (2015). Initial Public Offerings: Updated Statistics. University of Florida, Department of Finance, Working Paper.

  5. Kenneth French and Eugene Fama. (2012). Size, Value, and Momentum in International Stock Returns. Journal of Financial Economics, 105(3), 457-472.

  6. Michael E. Porter. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.

  7. Peter Lynch. (1994). One Up On Wall Street: How To Use What You Already Know To Make Money In The Market. Simon & Schuster.

  8. Philip Fisher. (1958). Common Stocks and Uncommon Profits. John Wiley & Sons.

  9. Richard A. Brealey, Stewart C. Myers, and Franklin Allen. (2011). Principles of Corporate Finance. McGraw-Hill.

Comments