Basis points are used to describe yields and interest rates but describe changes in the value of an asset, such as percentage changes in stock prices. The following are some common examples.
Corporate bonds are a type of bond issued by a corporation.
Derivatives of interest rates
Derivatives of credit
Common stock and other equity securities
PP Mortgage loans and other debt securities
Futures, options

Basis points (bps) are a unit of measurement used to describe changes in interest rates, yields, or other financial percentages. One basis point equals one-hundredth of a per cent (0.01%). They are commonly used in fixed-income instruments like bonds, treasury bills, and certificates of deposit to show small shifts in yield or interest rates. Basis points also apply to loans, mortgages, and credit products, where even minor rate changes can affect borrowing costs. In the stock market, they’re used to measure management fees, fund performance, or dividend yields. In forex trading, basis points describe fluctuations in central bank rates that influence currency values. Overall, basis points provide a precise way to discuss percentage changes across various financial instruments without confusion.