what happens when the nasdaq moves up and comes down by some points?

Answer 1

It reflects the movement of all the stocks in its "portfolio", that is all the stocks listed with NASDAQ. When the average price rises the NASDAQ goes up; the opposite is true when the averages fall.

The prices of the respective stocks is determined by investors who buy (hoping it will go up so they can make a profit), or sell (take profits/ stop losses).

"Points" are merely the value of the stock - 6 1/2 = $6.50; 7 1/8 = $7.12 - which flucuates throughout the trading day.