Market News Video
MNV MNV 10 Oversold Stocks You Need To Know About
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

ETN November 12th Options Begin Trading
Thursday, September 30, 11:02 AM ET, by Market News Video Staff

Investors in Eaton Corp plc (ETN) saw new options begin trading today, for the November ...

Eaton Enters Oversold Territory
Thursday, September 30, 11:29 AM ET, by Market News Video Staff

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, ...

ICE Makes Notable Cross Below Critical Moving Average
Thursday, September 30, 4:12 PM ET, by Market News Video Staff

In trading on Thursday, shares of Intercontinental Exchange Inc (ICE) crossed below their 200 day ...

ETN Named A Top Socially Responsible Dividend Stock
Friday, October 1, 7:43 AM ET, by Market News Video Staff

Eaton Corp plc (ETN) has been named a Top Socially Responsible Dividend Stock by Dividend ...

XRLV's Holdings Imply 11% Gain Potential
Friday, October 1, 8:56 AM ET, by Market News Video Staff

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Eaton Now #125 Largest Company, Surpassing Intercontinental Exchange

By Market News Video Staff, Thursday, August 12, 7:24 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.
Email EnvelopeFree Email Alerts By Stock:
Get Dividend Alerts
Get SEC Filing Alerts

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Eaton Corp plc (NYSE:ETN) has taken over the #125 spot from Intercontinental Exchange Inc (NYSE:ICE), 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 Eaton Corp plc (NYSE:ETN), the market cap is now $66.63 billion, versus Intercontinental Exchange Inc (NYSE:ICE) at $66.47 billion.

Below is a chart of Eaton Corp plc versus Intercontinental Exchange Inc plotting their respective size rank within the S&P 500 over time (ETN plotted in blue; ICE plotted in green):

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

ETN,ICE 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 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). 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 rankings daily.

Examine the full ETN market cap history vs. the full ICE market cap history.

At the closing bell, ETN is up about 0.6%, while ICE is down about 0.6% on the day Thursday.

This Article's Word Cloud:   Another   Below   Corp   Eaton   Exchange   Intercontinental   Investor   Market   NYSE   Online   about   apples   billion   capitalization   chart   companies   company   comparing   comparison   components   example   fillColor   find   full   history   important   index   investors   larger   look   market   mdash   much   mutual   ordered   other   over   plotted   raquo   reason   relation   size   solely   stock   stocks   that   their   those   value   which
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy
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

Eaton Now #125 Largest Company, Surpassing Intercontinental Exchange | Market News Video | Copyright © 2008 - 2022, 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.