1.

Because the present value of an investment in a stock depends on the

profitability of the company that issued the stock. If an investor buys a stock
while the company is profitable, the value of the stock will be high no matter
how long the investor holds it. Overtime, the present value of the stock will
change with the earnings of the issuer, so the present value of the stock will
not depend on how long the investor holds it.

2. Market capitalization is the aggregate valuation of the company based on its

current share price and the total number of outstanding stocks. It is
calculated by multiplying the current market price of the company's share
with the total outstanding shares of the company.
Ex: a company has 20 million outstanding shares and the current market price of
each share is Rs100. Market capitalization of this company will be 200,00,000 x
100=Rs 200 crore.
It does not equal the opportunity cost of capital of investing in the stock.