Beep

AAA

DEFINITION of 'Beep'

Financial industry jargon for "basis point." The term came into popular usage as an easier way of referring to the basis points' "BPS" acronym. It is sometimes also pronounced "bips".

INVESTOPEDIA EXPLAINS 'Beep'

A basis point is 1/100 of a percentage point in the context of interest rates and bond yields. For example, an interest rate increase of 0.25 percentage point by the Federal Reserve would be generally referred to as an increase of 25 basis points, and by financial industry insiders as an increase of 25 beeps.

RELATED TERMS
  1. Nickel

    A slang term meaning five basis points, or five pips. A nickel ...
  2. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Term Structure Of Interest Rates

    The relationship between interest rates or bond yields and different ...
  5. Pip

    The smallest price change that a given exchange rate can make. ...
  6. Yield

    The income return on an investment. This refers to the interest ...
Related Articles
  1. Understanding Interest Rates, Inflation ...
    Bonds & Fixed Income

    Understanding Interest Rates, Inflation ...

  2. Interest Rates And Your Bond Investments
    Investing Basics

    Interest Rates And Your Bond Investments

  3. What is a basis point (BPS)?
    Investing

    What is a basis point (BPS)?

  4. TIPS Are Unloved And Under-Owned
    Stock Analysis

    TIPS Are Unloved And Under-Owned

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center