Basis Point

A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equal to 0.01%, or one hundredth of a percent.

For example, if the interest rate on a loan increases from 4% to 4.25%, this would be a 25 basis point increase.

Similarly, if the price of a stock increased from $100 to $101, this would be a 1 basis point increase. Basis points are often used in finance to express very small changes in value or rate, and they are commonly used to describe changes in interest rates or other financial metrics.

What is Finanshels?

What is Finanshels?Setting up a good small-business bookkeeping system can be an involved process, especially if you’re not an experienced bookkeeper. Rather than spending enormous time and effort on getting your books up and running, consider turning to Finanshels for help. We’ll set up your bookkeeping system to ensure that your business is starting off right – and we’ll save you a huge amount of stress.Want someone to help you organize your bookkeeping system? Try Finanshels