Defining the Market

The market capitalization of a particular stock exchange can be defined as the value or worth of the entire stock market at a particular point in time. We all know that the business of the stock exchange is just nothing but buying and selling of shares and other financial instruments, and as long as there is the law of demand and supply, the price if goods, equities or anything that is traded cannot remain stagnant. Either it is up or it will be down according to the forces that is at play, and that is the same thing with the stock exchange .As long as shares and other instruments of money are traded at the floor of the stock exchange, prices must continue to move either up or down. Some companies must loose money and some must gain and for that reason, the market capitalization has to be determined daily, it is not steady.
At the close of business every day, the sum total of the capitalization of all the quoted companies on the exchange will be compiled together to arrive at the market capitalization for that particular day. I.e. the sum total of every individual firm quoted on the floor added together will give you the real capital value of that particular exchange. Whether a company records gain or loss, has a few trades or none at all, is on technical or indefinite suspension, all their values will be added up together to get the capitalization of the exchange for that particular day.