Stock Markets Exposed

What is the ratio between stock price changes and market point changes?

Every day the stock market moves by any number of points. The individual stocks move also. The move in stocks is called cents/dollars, etc. The move in the market is called points. I wondered what the ratio is between the move in money in the stock and points in the DOW/Nasdaq/S&P/NYSE, etc. So, how much money equals how many points? i.e. 1000 dollars equals 1 point in the market........what is that ratio? Thanks, k4k

Public Comments

1. It's different for all indexes and for each stock in an index. Each stock makes up a different percentage of each index; for the S&P and NASDAQ it depends on the stocks capitalization (number of shares x price per share). For the Dow it depends on the stock's price. The formula for each index calculation is available on wikipedia. Finally, there's no dollar value to a point. If you have $1 invested then a point has little value, if you have $1 billion invested then each point is very valuable.