This is a nice simple explanation of it. It's also why stock holders use "points" instead of "dollars." A stock share going up $1.50 is amazing if it was a penn

This is a nice simple explanation of it. It's also why stock holders use "points" instead of "dollars." A stock share going up $1.50 is amazing if it was a penny stock, and absolutely not worth mentioning if it was say, Tesla. But the points have the same meaning for either stock - one is just a lot higher of a point than the other, even though the dollar change was the same.