What does bp mean in finance?

In finance, bp most commonly means basis point, which is standard unit of measure for interest rates, percentages, and financial instruments, where one basis point equals one hundredth of one percent or 0.01 percent, so 100 basis points equals 1 percent. For example, if Federal Reserve raises interest rates by 25 bp, it means rates increased by 0.25 percent, and if bond yield moves from 5.00 percent to 5.50 percent, it increased by 50 bp. Basis points are used to avoid confusion when discussing small percentage changes in interest rates, bond yields, and fees. In finance, bp can also mean business plan, as in BP for startup funding, business partner, and business process. In accounting, BP can mean budget planning or business performance. BP can also mean bill of parcels or balance payable. In corporate finance, BP can mean British Petroleum stock ticker BP, which trades on NYSE and LSE, so BP stock means British Petroleum shares. In banking, BP can mean banking partner. In investment, BP can mean buying power. However, most common finance meaning is basis point, abbreviated as bp or bps plural, widely used on Wall Street, in Federal Reserve announcements, and in financial news to describe changes in interest rates, mortgage rates, and bond yields precisely without ambiguity, making it essential term for traders, economists, and investors discussing rate movements.