Point(redirected from point of lay)
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The smallest unit of price change quoted, or one one-hundredth of a percent. Related: Minimum price fluctuation and tick.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A way of conceptualizing price changes in the trading of securities. For stocks, a point corresponds to $1, while for bonds it indicates a 1% change relative to the face value. For example, if one states that GE rose two points on Thursday, this means that it rose $2. See also: Tick.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A change in the value of a security or a security index or average. For common and preferred stocks a point represents a change of $1. For bonds a point represents a 1% change in face value. For example, a one-point decline in a $1,000 principal amount bond translates to a $10 decline in price. For stock averages and indexes a point represents a unit of movement and is best interpreted as a percent of the beginning value. For example, a 100-point decline in the Dow Jones Industrial Average that started the day at 10,000 represents a 1% fall in the average.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.