Market News Video
MNV MNV 10 Bargains You Can Buy Cheaper Than Insiders Did
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Notable Friday Option Activity: ETFC, AVGO, SBUX
Friday, December 2, 1:20 PM ET, by Market News Video Staff

Looking at options trading activity among components of the S&P 500 index, there is noteworthy ...

Tempur Sealy International (TPX) Shares Cross Below 200 DMA
Tuesday, December 6, 11:29 AM ET, by Market News Video Staff

In trading on Tuesday, shares of Tempur Sealy International, Inc. (TPX) crossed below their 200 ...

TPX Crosses Above Average Analyst Target
Monday, December 19, 9:17 AM ET, by Market News Video Staff

In recent trading, shares of Tempur Sealy International, Inc. (TPX) have crossed above the average ...

ETFC Crosses Above Average Analyst Target
Tuesday, December 20, 9:42 AM ET, by Market News Video Staff

In recent trading, shares of E*TRADE Financial Corp. (ETFC) have crossed above the average analyst ...

Noteworthy ETF Outflows: XHB, TPX, WHR, MHK
Friday, January 6, 10:48 AM ET, by Market News Video Staff

Symbols mentioned in this story: XHB, TPX, WHR, MHK Exchange traded funds (ETFs) trade just ...

  More articles:  1 2 3 4 5 6 7 next »

Tempur-Pedic International Inc Larger Than S&P 500 Component ETFC

By Market News Video Staff, Friday, April 26, 5:07 PM ET
Play Video: The Importance Of Market Cap

If the video does not load after a few moments, Upgrade to the Latest Flash Player.

In the latest look at stocks ordered by largest market capitalization, Russell 3000 component Tempur-Pedic International Inc (NYSE:TPX) was identified as having a larger market cap than the smaller end of the S&P 500, for example ETFC (NASDAQ:ETFC), according to The Online Investor. Click here to find out the top S&P 500 components ordered by average analyst rating

Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Tempur-Pedic International Inc (NYSE:TPX), the market cap is now $2.94B, versus ETFC (NASDAQ:ETFC) at $2.92B.

Below is a three month price history chart comparing the stock performance of TPX vs. ETFC:

TPX,ETFC Relative Performance Chart

Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which indices will include the stock, and which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). And ETFs that directly follow an index like the S&P 500 will only own the underlying component of that index, selling companies that lose their status as an S&P 500 company, and buying companies when they are added to the index. So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these looks at comparative market capitalization daily.

At the closing bell, TPX is down about 0.3%, while ETFC is down about 0.7% on the day Friday.

Top Six Most Viewed Stories This Week @ Market News Video:

This Article's Word Cloud:   Another   ETFC   ETFs   International   Investor   Market   NYSE   Online   Pedic   Tempur   about   another   apples   capitalization   companies   company   comparing   comparison   component   down   example   find   important   index   investors   larger   like   look   market   much   mutual   only   ordered   other   reason   relation   size   smaller   solely   stock   stocks   that   their   these   those   trading   true   value   which   will
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy - Video Widget
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV MNV Portfolio Channel Stock Market Definitions

Tempur-Pedic International Inc Larger Than S&P 500 Component ETFC | Market News Video | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.