Definition of "Point Size" by Graphic Design Newcastle:
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Point Size refers to the measurement used to define the size of text in typography. It is the vertical distance from the top of the tallest ascender to the bottom of the lowest descender in a typeface, including a small buffer of space.
Point size is measured in points (pt), where 1 point = 1/72 of an inch. For example, 12 pt type is approximately 1/6 of an inch tall.
It's important to note that point size does not refer solely to the height of the letters themselves (like the x-height), but rather the full height of the type block, which includes ascenders, descenders, and spacing.