market capitalization rate

Definition

Rate of return expected to be realized from a security. This is an approximation of the discount rate that is used to calculate the present value of the security's cash flow.

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You need to make sure that you follow the market capitalization rate and strike when the price is right to do so.

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Since the stock was under appreciated and also overlooked, it stands to reason that the market capitalization rate would reflect such a low value as well.

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Before Bill purchased his office building with a group of other investors, he had to determine the market capitalization rate. Once he confirmed the rate, he felt comfortable making the investment.

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market capitalization expected return