Basis Point

A fancy way to talk about decimal points in finance. “One basis point” is 0.01; “10 basis points” is 0.10; “100 basis points” is 1.00. I know what you’re thinking: Why not just say “one” instead of “100 basis points”? Well, once it gets down to little numbers every tenth and hundredth counts, and if you want to put your money where your mouth is, you don’t want it to be a mouthful.

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