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Basis Point (BP)


Doc ID:    GL87
Version:    1.0
Status:    Published
Published date:    01/06/2011
 

Definition

Equivalent to .01 percent, or one hundredth of one percent, and is used as a measurement of fee rates. Rate changes are often expressed in basis points instead of hundredth percents, e.g., a fee rate increase of 1.95 percent to 2.0 percent is expressed as an increase of 5 basis points.