The unit in which the information carrying capacity or "signalling rate" of a communication channel is measured. One baud is one symbol (state-transition or level-transition) per second. This coincides with bits per second only for two-level modulation with no framing or stop bits.
At slow speeds, only one bit of information (signaling element) is encoded in each electrical change. The baud, therefore, indicates the number of bits per second that are transmitted. For example, 300 baud means that 300 bits are transmitted each second (abbreviated 300 bps ). Assuming asynchronous communication, which requires 10 bits per character, this translates to 30 characters per second (cps). For slow rates (below 1,200 baud), you can divide the baud by 10 to see how many characters per second are sent.
At higher speeds, it is possible to encode more than one bit in each electrical change. 4,800 baud may allow 9,600 bits to be sent each second. At high data transfer speeds, therefore, data transmission rates are usually expressed in bits per second (bps) rather than baud. For example, a 9,600 bps modem may operate at only 2,400 baud.
The term "baud" causes much confusion and is usually best avoided. Use "bits per second" (bps), "bytes per second" or "characters per second" (cps) if that's what you mean.
The term "baud" was originally a unit of telegraph signalling speed, set at one Morse code dot per second. Or, more generally, the reciprocal of the duration of the shortest signalling element. It was proposed at the International Telegraph Conference of 1927, and named after J.M.E. Baudot (1845-1903), the French engineer who constructed the first successful teleprinter.
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