Demystifying BPS and PBR: A Beginner's Stock Market Adventure
Demystifying BPS and PBR: A Beginner's Stock Market Adventure Demystifying BPS and PBR: A Beginner's Stock Market Adventure Back in 2023, I was a complete “stock newbie” (or “주린이” as we say in Korea), scrolling through financial news and feeling like I’d stumbled into a foreign language class. Terms like BPS and PBR popped up everywhere, and I was clueless. Fast forward to today, after some trial and error (and a few bad trades!), I’ve cracked the code on these terms. Let me take you through my journey, complete with numbers, tables, and tips that’ll make these stock terms feel like old friends. My First Encounter with BPS: The Tiny Number with Big Impact Last year, I read a headline: “Central Bank Raises Rates by 25 BPS.” I thought, “BPS? Is that some fancy stock code?” Turns out, Basis Points (BPS) are a way to measure tiny percentage changes, especially in interest rates or investment yields. One BPS equals...