Points

Business / Taxes / Points: The term points can mean different things in different contexts. With regard to stock, a point represents a $1 change in market price, so if a share of stock rises two points, its price has risen $2. With bonds, a point is a 1% change above or below its par, or face, value, so if a bond has a par value of $1,000, a point equals $10. But in the case of futures and options, a point usually represents a price change of one-hundredth of one cent. And you may also hear about points if you’re applying for a mortgage. In this case, points — also called discount points — are prepaid interest some lenders require at closing as a condition of approving the loan. One point is 1% of the mortgage principal, or 100 basis points. So if you are borrowing $200,000 and your lender charges 2 points, you owe $4,000, in addition to other closing costs. Prepaid interest is tax deductible in most cases, and your long-term interest rate will be lowered slightly — often 0.25% or 25 basis points — for each point you pay. But because points increase your closing costs, you may decide to choose a lender that doesn’t require points if you plan to move or refinance within a few years.

Experience Points

Entertainment / Video Games / Experience Points: In role-playing games or adventures, 'experience points' (often abbreviated to XP) are awarded for successfully completing tasks, or being victorious in combat. The accumulation of these points is usu MORE

Nodal Points

Entertainment / Photography / Nodal Points: Are located in two areas in a compound lens system. The front nodal point is where rays of light entering the lens appear to aim. The rear nodal point is where the rays of light appear to have come fr MORE

Delivery Points

Business / Finance / Delivery Points: The options available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. Delivery options mean that the buyer is uncertain o MORE

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