Thread: Explain a "point"

If I understand the question correctly, in indexes a point is a dollar. If the Dow is up 10 points, it means $10. When the indexes are up or down less than a dollar, it is considered to be up or down, "a fraction."

Since our funds are still in the $10 to $20 price range, we would say cents. "The S fund was up 8 cents today."

Am I on the right track with what you are asking?

Up four and seventy-two hundredths of a point; Rounded to the nearest point... Five Points; $5.00

Originally Posted by Bart

Could someone explain the "point" to me. We, at work, have been talking about how to figure out how to say what the current raise or lower points are. Example if the s fund is up 4.72 is that 472 points? The definetions section of this says "a point is the smallest unit of price change or 1/100th of a percent. Since the 2 (in the example above) is in the 1/100th column wouldn't the rest of it be four hundred seventy two points? Thanks and I hope I didn't post this question in the wrong area.

I agree with Tom on the main answer: We here just say it went up "xx cents"...and if it should ever occur....it went up "x dollars and xx cents".

I would argue, however, that the major indexes (Dow, S&P, etc.), are not scaled in US Dollars. You can't buy a share of an index....they're just scaled in non-unit numbers. Therefore, they rise "xx points".

Think the question is attempting to relate "basis points" for interest rates, (i.e. 25 basis points is 0.25%), with increases in value of mutual funds?? Personally, I wouldn't try to force the two into the same category.

Stick with "xx cents".

I think all of you answered the question. Today, the "S" fund closed up 6.43 (1.08%). Does this mean that it was up six dollars and 43 cents?

I just played with the calculator and we currently are at $18.08 share price in the S fund. With today's 6.43 increase, does this mean that tomorrow the chart on the tsp.gov site will show that my S fund is now worth $ 24.51?

I say yep.

Originally Posted by Bart

I think all of you answered the question. Today, the "S" fund closed up 6.43 (1.08%). Does this mean that it was up six dollars and 43 cents?

Nope. If the S is up 1.08%... add 1.08% to the TSP.GOV current price of the S Fund. Clap vigorously only if you're proven correct after TSP posts the final results.

Originally Posted by Bart

I just played with the calculator and we currently are at $18.08 share price in the S fund. With today's 6.43 increase, does this mean that tomorrow the chart on the tsp.gov site will show that my S fund is now worth $ 24.51?

Thanks!!

Originally Posted by Bart

I just played with the calculator and we currently are at $18.08 share price in the S fund. With today's 6.43 increase, does this mean that tomorrow the chart on the tsp.gov site will show that my S fund is now worth $ 24.51?

No..no...no....

The Wilshire 4500 index went up "6.43 points". This works out to 1.08% gain.

The S-Fund is invested in a mix of stocks meant to mirror the Wilshire 4500. It started at $18.08 per share. Once the fund prices are posted today (around 7:30pm EST), it will have risen something like 19 or 20 cents, to a value of $18.27 or $18.28.

($18.08 X 1.08% = 19.53 cents.....thus my 19 or 20 cents.)

Make sense?

Basic problem is your attempting to directly relate the INDEX value (Wilshire 4500) to the S-Fund share price.

Added: Fivetears beat me to it, and far more economically.

Good Luck!

Originally Posted by Bart

Thanks!!

I've got the "Redneck 2000" reduced key keyboard.
Less buttons to push.

Originally Posted by TiCKed

Fivetears beat me to it, and far more economically.