Difference between revisions of "Basis points"
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| − | A '''basis point''' in finance is 1/100th of 1%. | + | A '''basis point''' in finance is 1/100th of 1%. It is almost always used in the plural and thus its abbreviation is "bps". |
Thus 100 basis points is equivalent to 1%. | Thus 100 basis points is equivalent to 1%. | ||
Latest revision as of 23:33, August 25, 2020
A basis point in finance is 1/100th of 1%. It is almost always used in the plural and thus its abbreviation is "bps".
Thus 100 basis points is equivalent to 1%.
The terminology of basis points is used frequently in discussing changes in interest rates or small changes in profitability.