Under review

What’s the formula ?

anonymous 2 years ago in Marketplace updated by SA Editor Daniel Shvartsman 2 years ago 1

When a stock says its worth so many points how does that convert to dollars?

For instance S&P is 2,945.64. Is that the price per share?

Under review

Hi, thanks for the question. That appears to be correct, more or less - the S&P 500 represents the collective market cap of its components (share price * shares outstanding) divided by the sum of all the shares outstanding. It's not literally presented in dollars, but is the equivalent as I understand it. Here are some references: