A unit that denotes a change in the interest rate of a financial instrument and is equal to 1/100th of 1% or 0.01%.
Definition from Nolo’s Plain-English Law Dictionary
A basis point is a unit of measure used in describing interest rates. One basis point is equivalent to 1/100th of a percent, or 0.01%. For example, if the prime rate increases by 50 basis points, it means that the rate has risen 0.5%.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:11 pm