What's a Point? How the Dow Keeps Score

The following video is part of our "Motley Fool Investing Basics" series, in which Motley Fool contributor and financial planner Dan Caplinger discusses topics from around the investment world.

Today, Dan looks at the Dow Jones Industrial Average to answer a very basic question: what do points in the Dow mean? Unlike stocks, where a "point" is a dollar, the value of Dow points isn't nearly as clear. As Dan describes, stock splits and component replacements over time require changes to what's known as the "Dow divisor" in order to keep the Dow consistent over time. Despite its flaws, the Dow's point system is an easy way for the public at large to track the stock market, and Dan thinks it's worth holding onto.

[MissHorn]

Congratulations! I still have no idea what a point is.

[deltagamer]

Lol im 13 dont know what im doing here😂😂

[TheVikolavoice]

Wow i know it's not related to the info... but this guys almost does not blink!!!😐

[allandelarosa]

Aug 5th, 2024 checking in. Here to aee what points are. After ANOTHER global recession.

[sanizoure]

You've done a great job but I still don't understand. Thanks🤣🤣🤣🤣

[Continentalmunkey]

DOW and Virginia separation for compartmentalisation not disruption

[JudahTribunal]

What is the dollar value of a Dow Jones point... How much money was lost on August 5 2024?

[chrissgchriss]

So a point is the average cost in dollar amount of all the stocks put together?

[Eastcoast_Rds]

Hello!! Brand new investor here, wanted to know how the retail stocks are looking for this end of year? And how does the low oil/gasoline prices will effect the retail sales ( and how that will effect stock prices)
What should i look for before making a decision(end of year/Christmas season). (Investing short term)

[stevekuresa]

I still don't F^%$$ get it!! I need the basics how the daily closing #s means..

[jorgeriveramx]

This doesn't explain how points are calculated. It's crap