How To Understand Stock Market Points

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How To Understand Stock Market Points – This is a place for the community to provide tips and advice on How To Understand Stock Market Points. This topic was created by Marcel Brouillet and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - What does it mean when someone says that a stock went up X points? Does this refer to a percentage or numerical value?

Published: 9 years, 5 month(s) ago | Submitted by Sandy Stamler | permalink

For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of "points", this is the same as saying that the stock has lost or gained X number of dollars. Although one point always equals one dollar, the percentage value of one point movement can be different for two companies.
Tags: stock,points,basis point,bps,stock market terminology

For further reading: http://www.investopedia.com/ask/answers/04/043004.asp ^[1]

Tip 2 - Stock Market Points Vs. Percent

Published: 9 years, 5 month(s) ago | Submitted by ANTONIO BERDECIA | permalink

On the financial news channels, they love to talk about points -- such as: "The Dow was up 50 points today." Unfortunately, points have a different value depending on whether ...

For further reading: http://finance.zacks.com/stock-market-points-vs-percent-6029.html ^[2]

Tip 3 - What Does Buy Point Mean With Stocks? | eHow

Published: 9 years, 5 month(s) ago | Submitted by Bo Konring | permalink

A "buy point" for a stock is a range or price at which an investor or trader will agree to enter/purchase a stock position. This is commonly based on two general forms of evaluation: the fundamental value of a company's stock or the price of the stock relative to it technical price trading ranges.

For further reading: http://www.ehow.com/info_7757145_buy-point-mean-stocks.html ^[3]

Tip 4 - What does the value of the Dow Jones represent?

Published: 9 years, 5 month(s) ago | Submitted by Holly Benson | permalink

What does the value of the Dow Jones represent?

For further reading: http://economics.about.com/cs/stockmarket/a/dow_jones.htm ^[4]

Tip 5 - Stock Market 101: Understanding the Basics

Published: 9 years, 5 month(s) ago | Submitted by Rico 0100 | permalink

The stock market is a complicated entity to understand. Seriously. We’re bombarded with information about stocks and the ebbs and flows of the trading day, but some people have a hard time understanding the basics. My goal here is to break down the basics of the stock market – the stuff you need to know if you want to impress your friends at dinner one night.

For further reading: http://www.quickenloans.com/blog/stock-market-101-understanding-basics ^[5]