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 M¢25  Funded By Mahalo ? |  March 02, 2009 10:04 PM

Is it possible for the Dow, Nasdaq, or S&P 500 to ever dip below 0 points? And if so, what happens?

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March 02, 2009 10:11 PM | view on twitter
No, they can't be less than zero, because they are computed by adding up the prices of certain stocks, then divided by a certain number. The stocks themselves can't go under 0, so they can't either.

Of course, the possibility of them reaching zero is very low, anyway. Check the my source to see what would have to happen for it go anywhere near that low.
Source(s):
http://www.examiner.com/x-648-Baltimore-Financial-Examiner~y2009m2d11-Can-t...

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March 02, 2009 10:06 PM | view on twitter
No. The indexes are the total values of selected stocks. If all went bust, they'd be 0, not less.

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March 02, 2009 10:09 PM | view on twitter
There is some math to it but no. Indexes in this case cannot go below 0.

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