Percentage point and Short term: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Expand for example and link.)
 
imported>Doug Williamson
(Add links.)
 
Line 1: Line 1:
(bp).  
(ST).


1.


1.  
In financial markets 'short term' usually means remaining maturities of up to and including one year.


''Interest rates''.
There are some minor exceptions. For example in bond markets 'short term' can refer to original maturities of less than two years.


One hundredth of 1%


= 0.01%
2.


= 0.0001 as a decimal.  
''Financial reporting''.


For financial reporting purposes, short term borrowings and other liabilities are ones payable within a year, or the next financial reporting period, if shorter.


For example, an increase of three basis points (0.03%) from a starting rate of 2%, would give an increased rate of 2.03%.


== See also ==
* [[Balance sheet]]
* [[Bond]]
* [[Longer term]]
* [[Maturity]]
* [[Quoted rate]]
* [[Short]]
* [[Short dates]]
* [[Short-term investments]]
* [[Short-term notes payable]]
* [[Short termism]]


One hundred basis points are 1%.
[[Category:Planning_and_projects]]
 
[[Category:The_business_context]]
An increase of 3%, say from 2% to 5%, is an increase of 300 basis points.
 
 
2.
 
While bond coupons may be expressed in fractions (for example, quarters, eighths or sixteenths), yields and prices of most money market instruments, such as commercial paper or treasury bills, are quoted in basis points.
 
 
3.
 
''Foreign exchange rates.''
 
One hundredth of a cent, for example $0.0001, or its equivalent in other currencies.
Often, but not always, this represents a minimum price movement in the related foreign exchange rate quotation.
 
 
== See also ==
* [[Commercial paper]]
* [[Constant net asset value]]
* [[G+]]
* [[Percentage point]]
* [[Pip]]
* [[Price value of a basis point]]

Revision as of 14:01, 6 July 2022

(ST).

1.

In financial markets 'short term' usually means remaining maturities of up to and including one year.

There are some minor exceptions. For example in bond markets 'short term' can refer to original maturities of less than two years.


2.

Financial reporting.

For financial reporting purposes, short term borrowings and other liabilities are ones payable within a year, or the next financial reporting period, if shorter.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Percentage_point&oldid=44096’