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. Pip

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

    The income return on an investment. This refers to the interest ...
  4. Basis Point - BPS

    A unit that is equal to 1/100th of 1%, and is used to denote ...
  5. Interest Rate

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

    A debt investment in which an investor loans money to an entity ...
Related Articles
  1. Bonds & Fixed Income

    Understanding Interest Rates, Inflation ...

  2. Investing Basics

    Interest Rates And Your Bond Investments

  3. Investing

    What is a basis point (BPS)?

  4. Bonds & Fixed Income

    How long can I hold my HH/H Bonds and ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center