Baud Rate is a measure of the rate at which data in a stream is transformed and is also called the Signaling Rate. Many users believe Baud is equivalent to “bits per second,” but that is, strictly speaking, inaccurate: A 2400 bps modem actually transmits data at only 600 baud due to the way in which the information has been encoded. The term Baud derives from the surname of Émile Baudot, who was the inventor of the Baudot code used in telegraph communications.

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