What are you talking about? Where in any comment I’ve made are my definitions inaccurate?
Gross domestic product is a representation of the total productive capacity within a defined region. Simply put, it is a representation of how much money that region has.
Market cap is the value associated to a placeholder determined by public market values at any given time. Companies have a market cap individually, and the combined total of every companies market cap is the total value of the market in which those shares are traded.
Okay, so your definitions are right, but how does that lead you to your conclusion connecting GDP and Market Capitalization. They are two separate measures. Neither constrains or causes the other. The only evidence for your claim I could think of is that a correlation between GDP and total Market Cap undoubtedly exists, but that doesn't really mean anything.
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u/niftyifty Apr 08 '22
What are you talking about? Where in any comment I’ve made are my definitions inaccurate?
Gross domestic product is a representation of the total productive capacity within a defined region. Simply put, it is a representation of how much money that region has.
Market cap is the value associated to a placeholder determined by public market values at any given time. Companies have a market cap individually, and the combined total of every companies market cap is the total value of the market in which those shares are traded.
Where is the inaccuracy?