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Basis Points Interpration

Dear all, Recently FOMC Changed the fed rate to 5.75 from 6.25. how to interpret the same in context of Basis Points.--Akaswanand 14:27, 18 August 2007 (UTC)[reply]


Basis points are not 0.01%: they have a time dimension as well and are 0.01%p.a. Furthermore it is wrong to say they are mainly used for amounts less than 1%p.a. They are mostly (in fact exclusively) used for describing differentials to an absolute rate, e.g. the 1yr swap spread is 2 basis points; we will pay Libor plus 125 basis points for this funding. 121.217.29.27 (talk) 13:04, 21 October 2008 (UTC)[reply]

Other meanings?

There seem to be many finance meanings of "basis point" or at least "point". Could someone explain? When the Fed changes interest rates, those "points" appear to be full percent. I gather that for individual equities, a one-point change is really a one-dollar-per-share change. Then there's "points" as it refers to the Dow or NASDAQ. I think both this page and Point should make that clear. —Ben FrantzDale (talk) 23:27, 26 January 2008 (UTC)[reply]

Point as you mentioned in terms of equity prices means dollar.
Point in terms of rate means one percent.
Basis point in terms of rate means one one hundredth of one percent. —Preceding unsigned comment added by 151.200.32.170 (talk) 20:17, 20 September 2008 (UTC)[reply]

Generally Canadians seem to pronounce basis point as 'beeps' and Americans 'bips.' — Preceding unsigned comment added by 68.5.45.163 (talk) 04:08, 8 March 2013 (UTC)[reply]

Fraction of percentage or fraction of percentage point?

After reading this article i still don't know if basis point is one hundredth of percent, or one hundredth of percentage point. Is it possible that this term is used in both meanings? (I'm basically sure about the latter one). But in this case article should be divided in two sections. Or maybe its authors simply don't understand the subject? — Preceding unsigned comment added by 178.212.123.62 (talk) 23:43, 10 May 2013 (UTC)[reply]