# meaning of Basis point

#### Basis point meaning in Economics Dictionary

One one-hundredth of a percentage point. Little motions in interest, the exchange rate and bond yields tend to be described when it comes to basis points. If a bond yield moves from 5.25per cent to 5.45%, it offers increased by 20 basis things.

#### Basis point meaning in Finance Dictionary

Usually one hundredth of a share point used in quoting moves in interest rates of yields on securities.

#### Basis point meaning in Law Dictionary

the littlest point of yield on a guitar. It may be one hundredth of a percent when one per cent is 100 basis points.

#### Basis point meaning in Business Dictionary

Smallest measure of quoting the yield on a bond, note, or other debt instrument. One foundation point is equal to one hundredth of one percent (0.01percent): one per cent of a yield equals 100 basis things. Including, an interest rate of 5 per cent is 50 basis point greater than the attention price of 4.5 per cent. Similarly, a-spread of 50 foundation things (between the quote price and gives cost of a bond) means the trader must pay 0.5 per cent more purchasing it than he/she could recognize from selling it.