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Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

The variation of prices up and down.  A chart of daily fluctuations will reveal the trend in prices over time, whether an intermediate (temporary interruptions up or down to the major trend) or major trend.  In DOW THEORY terminology, the two are termed secondary movements and primary trend, respectively.

In security markets, the minimum variation in price for most stocks and corporate bonds is 1/8 of a point ($0.125 per share for stocks, $1.25 for bonds).  In the case of government securities, Treasury notes and bond issues are usually quoted in thirty-seconds of a point, e.g., a bid of 104.8 is 104 8/32 points.  For each $1,000 of face value, the standard denomination, a full point equals $10 and a thirty-second equals $0.3125.  Thus, a quotation of 104.8 means a dollar price on a $1,000 security of $1,042.50, or 104 x $10 + (8 X $0.3125) = $1,042,50.  Denominations other than $1,000 are quoted in multiples of such a price.

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