It is the cost of all the share of that company. Or It is the sum total of the value of company in the market.
Formula to calculate Market capitalisation
Market capitalisation= Price of one share x No. of shares.
Free Float Market Capitalisation
It is the market capitalisation which remains after elimination of all the shares owned by the owners of the company. Or it is the share which is available in market for the public. this helps in determining Nifty and Sensex.
Formula to calculate Free Float Market capitalisation
Free Float Market Capitalisation= Price of 1 share x (Total no. of share – no. of shares owned by the owners)