is a point in the stock market ( dow) equal to 1 million or 1 billion dollars
2007-02-27 13:37:29 · 6 answers · asked by Parisa W 1 in Business & Finance ➔ Investing
It is not counted in money the point. One point is called one 'basis point' which is 8 ticks. Each tick has four subticks. So the price moves like 4/32, 8/32. 12/32, 16/32 and so on to 1. 4/32 is one tick or 1/8th. It can also move by a tick and few subticks. One tick in money term is 1 dollar.
2007-02-27 21:12:13 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋
Great question! Did some research because it was a challenge. It has nothing to do a simple thing like 1 point equal to 1 million or billion. It is a scaled average, not the actual average of the prices of its component stocks (30) and the actual average of prices which is multiplied by a scale factor which changes over time. In other words, it will take a math major to figure it out in simple terms. Regardless of the math, the Dow Average does track the 30 largest corporations and provides a number which reflects the general trend of the market on a daily basis. It's just one sign post among many in the market.
2007-02-27 14:14:13 · answer #2 · answered by philsky 2 · 0⤊ 0⤋
No each is one dollar. But rated a some point in the past. The dow just shows what the market is worth
2007-02-27 13:46:54 · answer #3 · answered by RayM 4 · 0⤊ 0⤋
One dollar. Technically you could buy one share of the dow jones for the 12216 mark that it ended at today
2007-02-27 13:44:07 · answer #4 · answered by sam hill 4 · 0⤊ 0⤋
I think the DJIA is the price of one share of several hundred large cap companies added together. I believe one point is equal to $1.
2007-02-27 13:49:04 · answer #5 · answered by damagui 2 · 0⤊ 0⤋
nicely to place it in basic terms it extremely is the ultimate expenses of all the shares in any given prevalent, in spite of the undeniable fact that it is not extremely that easy. on account that distinctive shares carry distinctive weight than different shares they use a divisor, it extremely is a great selection that keeps getting adjusted for inventory splits, dividends and the different ameliorations that are being made by the shares. working example IBM consists of a a ways better weight than say GM, so IBM going on 2 factors impacts the averages greater desirable than GM going on 2 factors. because of different weight of the shares and the ameliorations being made the averages are quoted as factors and not money.
2016-11-26 19:46:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋