basis point

Definition

One hundredth of a percentage point (0.01%). Basis points are often used to measure changes in or differences between yields on fixed income securities, since these often change by very small amounts.

Use basis point in a sentence

We had to figure out what the basis point was, so I asked my brother to do it, cause he knew all about that kind of thing.

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We had seen a single basis point in commission because the stock was mostly staying even with occasional fluctuations in price.

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Fred was happy his 401k had access to institutional class mutual funds, investor class funds had fees of up to 2 percent, but the institutional funds only charged a few basis points a year.

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point Price Value of a Basis Point