point investment & finance definition
A
finance charge that is paid up front on mortgages by the borrower. A point is 1
percent of the loan value. For instance, on a $200,000 mortgage, $2,000 is the
point the borrower would pay as a finance charge. Points are tax deductible
because the money paid is mortgage interest. However, points likely may have to
be deducted across the life of the loan.
See point in Wall Street Words
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.
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