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It is an almost irrelevent number as it doesn't represent a dollar figure or anything. The points are based on averages of stocks. Usually most stock exchanges set a point value at a specific date and calculate the average of all the stocks represented in the exchange and changes the numbers according to the price fluctuations of each stock. For New York Stock Exchange (according to Wikipedia), the value is based on the last day of 2002, the average was set at 5000.
(These averages or point values can be reset at different days).
To have any meaning you must have reason to know where and when it was first calculated.
It is an irrelevant number used by exchanges for displaying ups or downs in the market.
It's like asking what a degree is if you don't know the scale , is it fareneit , celsius or kelvin , even if you know the scale , how can you define a degree?
212 degrees farenheit is meaningless unless you have something to compare it to , in this case it is the boiling "point" of water at sea level , now you have a comparative.
Some questions just have no right answer , for instance , if it's 0 degrees out today and tomorrow is expected to be twice as cold , just what will the temperature be tomorrow?
Don't ya just hate answers like that.
(These averages or point values can be reset at different days).
To have any meaning you must have reason to know where and when it was first calculated.
It is an irrelevant number used by exchanges for displaying ups or downs in the market.
It's like asking what a degree is if you don't know the scale , is it fareneit , celsius or kelvin , even if you know the scale , how can you define a degree?
212 degrees farenheit is meaningless unless you have something to compare it to , in this case it is the boiling "point" of water at sea level , now you have a comparative.
Some questions just have no right answer , for instance , if it's 0 degrees out today and tomorrow is expected to be twice as cold , just what will the temperature be tomorrow?
Don't ya just hate answers like that.
