for example, the dow jones is made up of a list of stocks. each stock has a certain weight (a factor) add all the prices of these stocks up, factoring in the weight. youll arive at the number of the dow jones.
the dow therefor represents what you would pay, if you would buy everything in the dow jones.
market value of ONE share of stock in that corporation - it might not necessarily equal the actual book value or liquidation value of one share - just an investor driven "perceived" value of one share
It is a mythical number that is only pertinent in a relative sense. The important number is the percentage change.
The value of a corporation. Based on actual value and psychological value.
points = percent of value