For stocks, one point equals one dollar. So when you hear that a stock has lost or gained X number of "points", this is the same as saying that the stock has lost or gained X number of dollars.
Although one point always equals one dollar, the percentage value of one point movement can be different for two companies. Let's consider a simple example: if the fictional company TSJ Sports Conglomerate loses four points, dropping from $12 to $8, it would be experiencing a 33% drop in share price. Yikes! This is dramatically different from a fourpoint drop experienced by a company like Cory's Tequila Co., which is trading at $104. If CTC goes down to $100, this only represents a 3.8% decline.
Do not confuse points with percentages. When you hear someone say the stock dropped 10 points, the significance of that drop depends on how high the share price is.
It is important to note here that we are referring strictly to stocks, nothing else. People often refer to indexes, bond prices or currencies being up or down X number of basis points, and basis points are different. One basis point is equal to 1/100th of a percent, so if someone says the dollar is up 50 basis points, this is like saying it is up 0.5%.

What is a basis point (BPS)?
A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial ... Read Answer >> 
Why are bond yields calculated in terms of basis points?
Find out why financial analysts and publications track and quote bond yields in basis points, or bps, rather than simply ... Read Answer >> 
What is a company's worth, and who determines its stock price?
A company's worth  its total value  is its market capitalization, and it is represented by the company's stock price. Market ... Read Answer >> 
How do I calculate how much I've gained or lost on a stock holding?
This may seem like a fairly simple question, but it can be confusing if you fail to break it down into the proper steps. ... Read Answer >>

Investing
Investing $100 a Month in Stocks for 20 Years
Learn how a monthly investment of just $100 can help build a future nest egg using properly diversified stocks or stock mutual funds. 
Investing
How Points Relate to Financial Instruments
Points usually refer to the measurement of some change in a financial instrumentâ€™s value. 
Trading
A Common Base for Understanding Changes in Value
A discussion of basis points as well as basis point calculations using Excel. 
Managing Wealth
Know Your Stock Cost Basis
Understanding equity cost basis is critical for tracking the gains or losses of an investment. 
Managing Wealth
What Determines Your Cost Basis?
In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ... 
Investing
Buying Stocks When the Price Goes Down: Big Mistake?
Averaging down is a trumpeted strategy that has merit, but can amount to throwing money away when used carelessly. 
Personal Finance
Mortgage Points: What's the Point?
Learn how to pay less for your home in the long run, or save in the short run.

Basis Point (BPS)
A unit that is equal to 1/100th of 1%, and is used to denote ... 
Points
1. A 1% change in the face value of a bond or a debenture. 2. ... 
Forward Price
The predetermined delivery price for an underlying commodity, ... 
Closing Points
Points that are paid at the time of closing of a mortgage transaction. ... 
Covered Interest Arbitrage
The practice of using favorable interest rate differentials to ... 
Correlation
In the world of finance, a statistical measure of how two securities ...