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How much is a point worth in dollars when talking about the stock exchange?
When the news tells you the stocks or bonds have gone down, lets say, 10 points , how does this translate into dollars?
Could you please include an example so I can follow this clearly?
Thank you to all who answer.
7 Answers
- mukwonago53149Lv 51 decade agoFavorite Answer
If a stock goes up or down by 1 point, that 1 point represents $1 per share.
If they are talking about interest rates, 1 basis point represents 0.01 percent. In other words, if the interest rates go up by 100 basis points, they have went up 1% such as going from 5% to 6%.
- Anonymous1 decade ago
A simple technique is this. If you divide the index at the start of the day by 100, that will tell you what number of points equals each one percent of the index.
i.e., Index is 7500, then divide by 100, and that lets you know that for each 75 points, the market has moved one percent in value. Getting hung up on the "dollar value" is really not that helpful, as much as knowing the relative change, since the DOW is a composite of 30 selected industrial companies, and the S&P is a composite of the 500 largest.
- 1 decade ago
What I think you may be referring to are "basis points". If that is the case, a basis point is essentially a fraction of a % (1/100). So, for every 1%, there are 100 basis points.
Example, the market went down "500 points" means it went down 1/2 of 1%, so if you owned 1,000,000 of stock and it goes down 500 points you have lost 1/2 of 1% or 5,000$.
- silviLv 45 years ago
maximum exchanges handle an Index which represents the main time-honored close by shares. so which you have the Dow interior the U. S. and the FTSE one hundred interior the united kingdom. If the FTSE is up fifty two factors over sooner or later it ability the final cost is fifty two larger. So it could have opened at 5200 that morning and closed interior the afternoon at 5252.
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- Anonymous1 decade ago
10.00 points i believe equals $10.00