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What's the difference between 1% and one percentage point?

  • 31-08-2001 1:15pm
    #1
    Fand
    Closed Accounts Posts: 258 ✭✭


    There's a difference between one percentage point and 1%, but I can't remember what it is. Explain, maths geeks, please!


Comments

  • #2
    beaver
    Closed Accounts Posts: 512 ✭✭✭beaver


    AFAIK one percentage point is one one-hundredth; i.e. 1%

    -Ross
    When I was young my mother told me not to look into the sun; so once, when I was six, I did...


  • #3
    Kix
    Closed Accounts Posts: 1,193 ✭✭✭Kix


    Hmmmm....

    1% == 1 percentage point generally, but I suppose there could be a difference in usage terms. For example if someone said that:

    "They had 50% support at the last poll and that's risen by 1%"

    then they could mean that it gone up to 50.5% (50% + (1% of 50%)) instead of 51%. If they said it had raised by "one percentage point" then it would be unambigious that the support was now 51%.

    Does that help?

    K


  • #4
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    <font face="Verdana, Arial" size="2">Originally posted by beaver:
    AFAIK one percentage point is one one-hundredth; i.e. 1%</font>

    It all depends on context. If intest rates go from 5.00% to 6.00% they have gone up twenty percent, but one percentage point.

    If they go from 5.00% to 5.10% the phase "interest rates have gone up 10 basis points" can be used.

    Similar expressions are used in relation to indices (usually base 100) and in particular stock exchange indices, e.g. at lunchtime today the ISEQ had dropped 29.89 points on the day to 5,739.69. However, this is a change of -0.52% on the morning.
    Kill, kill, kill the laser mice.


  • #5
    Fand
    Closed Accounts Posts: 258 ✭✭Fand


    Kix - Exactly. That was what I was trying to think of.

    By the same token, WHY are stock markets quoted in points, instead of by percentages, on TV? I mean, if the Nasdaq drops (ooops, sorry, rises of course I meant) by 30 points and the Nyse by 5 points, percentagewise the rises may be quite different. Baffling.


  • #6
    Volvagia
    Registered Users, Registered Users 2 Posts: 1,119 ✭✭✭Volvagia


    This posts make my head hurt!!
    The Millenium Bug, You mean Han Solo's ship is coming here in the year 2000?


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  • #7
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    <font face="Verdana, Arial" size="2">Originally posted by Fand:
    By the same token, WHY are stock markets quoted in points, instead of by percentages, on TV? I mean, if the Nasdaq drops (ooops, sorry, rises of course I meant) by 30 points and the Nyse by 5 points, percentagewise the rises may be quite different. Baffling. </font>

    So that they can be referred back over a long period of time - I think the Dow Jones started at 100 way back in the 1920's. Each US$100 invested then is now worth US$10,000 - even after dividend payments (which reduce the value of the company) are taken into account.

    Likewise if someone says, let us say, the FunnyDAQ rose 3% to 666 points today, you are able to take into account that it dropped by 2% to 647 (from 660) the previous day - if someone is only given percentages, it is difficult to gauge where things are.

    By the way it is unlikely that someone will say that the NYSE has dropped / risen by a given percentage on the day - they may quote the Dow Jones (based IIRC on 100 companies) or the S&P (based on 500 companies). You will find too many fickle companies at the bottom of a major stock exchange to include in the main indices. There is the NYSE Composite - but I'm not sure how it is made up

    The Irish Stock Exchange is at www.ise.ie, up to date prices at http://www.ise.ie/marketinfo/frequity.htm

    The New York Stock Exchange is at www.nyse.com

    I don't know the London SE address but http://www.ftse.com looks OK.
    Kill, kill, kill the laser mice.


  • #8
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    <font face="Verdana, Arial" size="2">Originally posted by Fand:
    By the same token, WHY are stock markets quoted in points, instead of by percentages, on TV? I mean, if the Nasdaq drops (ooops, sorry, rises of course I meant) by 30 points and the Nyse by 5 points, percentagewise the rises may be quite different. Baffling. </font>

    So that they can be referred back over a long period of time - I think the Dow Jones started at 100 way back in the 1920's. Each US$100 invested then is now worth US$10,000 - even after dividend payments (which reduce the value of the company) are taken into account.

    Likewise if someone says, let us say, the FunnyDAQ rose 3% to 666 points today, you are able to take into account that it dropped by 2% to 647 (from 660) the previous day - if someone is only given percentages, it is difficult to gauge where things are.

    By the way it is unlikely that someone will say that the NYSE has dropped / risen by a given percentage on the day - they may quote the Dow Jones (based IIRC on 100 companies) or the S&P (based on 500 companies). You will find too many fickle companies at the bottom of a major stock exchange to include in the main indices. There is the NYSE Composite - but I'm not sure how it is made up

    The Irish Stock Exchange is at www.ise.ie, up to date prices at http://www.ise.ie/marketinfo/frequity.htm

    The New York Stock Exchange is at www.nyse.com

    I don't know the London SE address but http://www.ftse.com looks OK.
    Kill, kill, kill the laser mice.

    [This message has been edited by Victor (edited 02-09-2001).]


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