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Basis Points (bps)
One hundredth of a percentage point.
Definition
A basis point equals 0.01 percentage point, used to describe small changes in rates or share.
How to Calculate
Multiply the percent change by 100 to get basis points.
Why it Matters
Adds clarity when percent changes are small.
Key Advantages
Avoids rounding errors and confusion.
Example
Share rose 0.25 points, or 25 basis points.
Use it to
Express rate or share changes in hundredths of a percent for precise reads. Report small movements in share, penetration, or margin using bps to avoid rounding ambiguity.
