
Point   • The smallest unit of price change quoted or, one onehundredth of a percent. Related: minimum price fluctuation and tick.   • (1) 100 bp = 1%. (2) One percent of the face value of a note or bond. (3) In the foreignexchange market, the lowest level at which the currency is priced. Example: "One point" is the difference between sterling prices of $1,8080 and $1,8081.   • Is one percent of the principal amount.    Embedded terms in definition   Bond Change Currency Face value Market Minimum price fluctuation Note Prices Principal amount Principal Tick Unit
   Referenced Terms   Accrual basis: Recognizes revenue at the Point of sale and recognizes expenses that were incurred to earn that revenue (matching principle).
  Alpha: Is a measure of the incremental reward (or loss) that an investor gained in relation to the market. Typically, this is measured as performance of a selected portfolio relative to a market benchmark. An enhanced S&P 500 portfolio might have an alpha of .25 which means that the pickup was .25% or a quarter Point better than the standard.A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. For example, an alpha of 0.4 means the fund outperformed the marketbased return estimate by 0.4%. An alpha of 0.6 means a fund's monthly return was 0.6% less than would have been predicted from the change in the market alone. In a Jensen Index, it is factor to represent the portfolio's performance that diverges from its beta, representing a measure of the manager's performance.
  Balance sheet: Summary statement of the firm's financial position at a given Point in time.A summary of the assets, liabilities and owner equity at a defined moment in timeA company's financial statement that reports its Assets, Liabilities, and Shareholders' Equity on a given date. Liabilities always equal assets, hence the name balance sheet. It is issued annually and quarterly.The balance sheet of the Bank shows assets and liabilities. Assets include cash and equivalents, securities held, and loans. Liabilities include deposits, purchased funds, longterm debt and equity.Also called the statement of financial condition, it is a summary of the assets, liabilities, and owners' equity.
  Basis point: A measure of a bond's Yield, equal to 1/100th of 1% of yield. A bond whose yield increases from 5.0% to 5.5% is said to increase by 50 basis Points.In the bond market, the smallest measure used for quoting yields is a basis Point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.1/100th of 1%.Is the value of an 01 or basis Point for credit instruments. Here, it refers to onehundred of a full percentage point in yield. Sometimes, it refers to a basis point in price. It can also refer to a basis point difference in a basis time series.
  Basis point: A measure of a bond's Yield, equal to 1/100th of 1% of yield. A bond whose yield increases from 5.0% to 5.5% is said to increase by 50 basis Points.In the bond market, the smallest measure used for quoting yields is a basis Point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.1/100th of 1%.Is the value of an 01 or basis Point for credit instruments. Here, it refers to onehundred of a full percentage point in yield. Sometimes, it refers to a basis point in price. It can also refer to a basis point difference in a basis time series.
   Related Terms   Basis point Break point Breakeven point Cash flow break even point Mid point Operating breakeven point Point and figure chart Price value of a basis point Reorder point


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