A basis point is what you get quoted on anything with interest payments involved.

Don't let this fool you, it is very simple:

100 basis points is the same as 1%. 1 basis point = .01%.

For bonds, the basis is another way of saying the investors yield to maturity.

If you hear talk about a basis book, this is where they have the yield to maturity and the prices of bonds.

In taxes, the basis is usually the purchase price.

This is where you begin in figuring out the capital gain or loss.

Getting the basis to adjust up upon transfer is one of the main focuses of estate planning.

In DPP's the basis is used to figure out the maximum loss that is allowed for tax purposes (the original investment + recourse loans.)

In a Futures contract, the difference between the futures price and the value of the underlying security.

In the contract, the premium or discount you pay for the future contract is an indication of what the market feels will happen to that item (whether it will increase or decrease in value during time horizon).

As a rule of thumb: basis means either what was paid for it, or the difference/yeild of something. A basis point is a fraction of a percent.