QUESTION $2[10$ MARKS$]$

A friend at university notes that you are studying Finance and Investment Management. He asks why $($FNB$)$ the First

National Bank was trading at a share price of R$47\mathrm{.}33$ and $($STD$)$ Standard Bank R$206\mathrm{.}50$ He would like to know if this

means that STD is much more valuable than FNB$.$

Describe Market Capitalisation of companies and why it matters giving an example of the two companies above $.$ Which

company has a greater equity value?