What Are Points

When you begin investing in stocks you will hear the term points being thrown around a lot. The term points is simply one of those fancy Wall Street terms.

A point is basically when an actual stock price moves up or down by one dollar.

As a simple example:

If you owned a stock that was $5.00 dollars when you bought it, and now it is worth $10.00 you would say that stock went up by five points.

Wall Street prefers to use the term points, because talking about actual money when discussing stocks is suppose to be rude or bad luck so to speak.