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