* Site-Outage Notice: Our engineering elves will be tweaking the Shmoop site from Monday, December 22 10:00 PM PST to Tuesday, December 23 5:00 AM PST. The site will be unavailable during this time.
Dismiss
© 2014 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Basis Point

Definition:

One hundredth of one percent. That is, if mortgage rates are quoted today at 6.274% and then next week are quoted at 6.284%, they have gone up one basis point. If they moved two weeks later to 6.074%, they have gone down 20 basis points from the original quote.

Advertisement