Financial Definition of Basis Point
Meaning of Basis Point
In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.
International Trade Meaning and Definition of Basis Point
Equal to 1/100 of one percent.
Legal Definition of Basis Point
One gradation on a 100-point scale representing 1%; used especially in expressing variations in the yields of bonds. Fixed income yields vary often and slightly within one percent and the basis point scale easily expresses these changes in hundredths of 1%. For example, the difference between 12.83% and 12.88% is 5 basis points.
Related Entries of Basis Point in the Encyclopedia of Law Project
Browse or run a search for Basis Point in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Basis Point in Historical Law
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Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Basis Point in the Legal Abbreviations and Acronyms Dictionary.
What does Basis Point mean in American Law?
The definition of Basis Point in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:
A unit of measure for bond and note interest rates equal to .01%, i.e., 100 basis points equals 1%.
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Concept of Basis Point in the context of Real Property
A short definition of Basis Point: A finance term meaning a yield of 1/100th of 1%.
Concept of Basis Point in the context of Real Property
A short definition of Basis Point: A finance term meaning a yield of 1/100th of 1%.
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