Definition of Basis Point
What is a "basis point"? What is the definition of the term "basis point"?
A "basis point" is simply 1/100th of a percentage point.
For instance - let's say that an interest rate moves from 4.0% to 4.1%. This would be a 0.1% move, or 10/100ths of a percentage point, or 10 basis points.
So, in this case, we could say that the interest rate increased by 10 basis points.
Another example - the yield on a bond slips from 7.1% down to 6.8%. This would be a 0.3% move lower, or 30/100ths of a percentage point, or 30 basis points.
In this case we could say that the yield on this bond dropped 30 basis points, which equals 0.3%.
Davemanuel.com Articles That Mention Basis Point:
Europe In Crisis
What's Wrong with Berkshire Hathaway?
Aggressive Interest Rate Cut by Australia's Central Bank Likely Start of Coordinated Global Rate Cuts
What Now for the Financial Markets?
The Stock Market Goes Into Complete Meltdown Mode on Monday
Click Here For Hundreds More Definitions