For example, if a said stock was worth 20 this week, then 23 next week how much money did the company gain?
2007-10-02 02:22:43 · 3 answers · asked by vv987vv987vv 2 in Business & Finance ➔ Investing
$3 per share
2007-10-02 02:44:37 · answer #1 · answered by Nelson_DeVon 7 · 0⤊ 1⤋
One point change in a stock equals 1% of its value. In your example, a stock worth $20 going up to $23 means a 15 point gain or 15% change.
In reference to the stock market as a whole, the Dow (which is the total of a select group of stocks) also refers to incremental changes as points. However, these are not exact percentages of the current value. For example, with the Dow at 14,000 it takes a change of 140 points to equal 1%. I believe that points are used as a common measurement throughout all stock markets because otherwise you'd have all the measurements in different currencies, which would make it more difficult to relate to in a global market.
2007-10-02 13:52:00 · answer #2 · answered by Mary T 2 · 0⤊ 0⤋
the company did not gain anything...the value of the company stock could be the number of shares outstanding multiplied by the current price,,,,,,,,,,,,,,
2007-10-02 09:49:43 · answer #3 · answered by richard t 7 · 0⤊ 2⤋