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When the All Ords index was started it had a certain amount of value which was given an arbitrary value of 500 points. Since then the total value of the shares included in the All Ords has increased over 5 times. This has been due to share price increases and new companies listing on the ASX.

If you hear on the news that the market has taken a plunge of 26 points and the All Ords is 2600. It relates to a 1% loss in value. Not much to worry about really.

The bottom line is it depends on what shares you hold. The shares you hold could still go up even if the All Ords drops.

I hope this answers your questions.

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