Stock Market Investors » Glossary of Stock Terms » What is a Basis Point?

What is a Basis Point?

Generally the value of a basis point is equal to one hundredth of a percent. This means that one percent is equal to 100 basis points. You often hear such statements in the media that the Fed has increased a particular rate by a certain number of basis points.

1 basis point = 1/100 of 1%

1% = 100 basis points

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