Which statement best defines market capitalization?

Market capitalization is best defined as the total market value of a company's outstanding shares. This metric is calculated by multiplying the price of a single share by the total number of shares outstanding. It serves as an indicator of a company's size and investor perception in the market. A higher market capitalization typically suggests that the market has a favorable view of a company’s prospects, while a lower market capitalization may indicate the opposite.

The other options do not accurately represent the concept of market capitalization. The total value of a company's assets refers to its balance sheet strength but does not reflect the market's evaluation of its worth through share prices. Revenue generated annually indicates a company's sales performance but does not encompass its total equity value. Lastly, net income is a measure of profitability during a specific period, and while it can impact a company's stock price and, consequently, its market cap, it does not directly define market capitalization itself.