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Basis Points (BPS)
Definition
A unit of measurement used to express small changes in percentages, where one basis point equals one one-hundredth of a percentage point (0.01%). Basis points are commonly used to describe changes in share, margin, distribution, or rates with greater precision than percentages alone.
How It's Calculated
1 basis point = 0.01 percentage points
Example
If a beverage brand’s dollar share increases from 12.50% to 12.75%, the change is +25 basis points, not a 0.25% increase.
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