Question about Prices

MSheldar22 · #1 (**permalink**) 12-14-05, 02:12 AM

Hi Blain! I have heard you are a great teacher so I am looking forward to having you answer some of my questions! Figured Id start this section off

!

What does it mean when people say, "Google is down 3 points", or like "That stock is up 5 ticks today". What is this lingo?!

Matt Moss · #2 (**permalink**) 12-14-05, 02:39 AM

A point is equal to $1. So if GOOG is down 3 points, its down $3.

As far as being up or down a "tick," I know that the stock exchanges used to not run on the decimal system. So you'd see a stock up like 7/16s or 1 1/4 or something like that. I believe a "tick" referred to the minimum fractional amount that the stock could move. I suppose that with the current system, a "tick" would be equal to $0.01. Not 100% sure though, perhaps Blain can back me on this one.

Sorry for stealing your questions, Blain!!

taylor04 · #3 (**permalink**) 12-14-05, 11:44 AM

also remember that stocks that cost more a point isnt as much as it would if it was a lower price, if you lose 10 dollars on google thats only like 2.5%, but if you lose 10 points on a 20 dollar thats a 50% loss, so remember to look at percentage up or down and not to get emotional about if a stock like google loses 10 points

Stocktrading101 · #4 (**permalink**) 12-14-05, 03:04 PM

Excellent answers guys, thanks for posting great interpretive answers! Matt, no need to get an answer from me here, these guys are on top of it!

Quote:

I believe a "tick" referred to the minimum fractional amount that the stock could move. I suppose that with the current system, a "tick" would be equal to $0.01. Not 100% sure though, perhaps Blain can back me on this one.

I think you are right on that one Moss. Investopedia says, "The minimum upward or downward movement in the price of a security." So yup, I concur; BuMp.

Regards,