In finance and investing, "basis" refers to the difference between the market price of an asset and its original purchase price or cost. This concept is important for calculating gains or losses when the asset is sold. For example, if you bought a stock for $50 and it is now worth $70, your basis is $50. In agriculture, "basis" can also refer to the difference between the local cash price of a commodity, like corn or wheat, and the futures price for that commodity. Understanding basis helps farmers and traders make informed decisions about selling their crops or managing risk in the market.