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The encyclopedia linked to above fails to mention that in 1936 the baud was redefined to include variable length symbols such as in Morse code. The lowest common denominator of time duration was the Baud. In morse code it is the duration of a dot and the space between elements in a letter.
To my understanding, in serial transmission, Baud is the throughput include overhead. bps is data rate. For example, in Gigabit Ethernet, throughput is 1.25Gbaud but the data rate is 1Gbps which exclude 25% overhead cause by 8b10b.
The most corrupted terms in telecommunications are baud rate and bits per second. My current understanding of these terms is given here .
Baud is the number of signal level changes per second in a line, regardless of the information content of those signals. Bits per second is the rate of transfer of information bits.
For example, each character in asynchronous RS-232 coding includes a start and stop bit that are not counted as information bits, so the BPS rate is actually less than the baud rate. Present-day modems, on the other hand, use a set of discrete amplitude and phase values to encode multiple bits with each signal change. This technique, along with compression schemes and other tricks, allows BPS rates of 14,400 and higher on lines that support relatively low signal change rates (about 2400 baud for phone lines).
The vast differences on this term are caused by two basic groups of people. One is the mathematical communication theorists and hardware designers. The other group is software programmers.
As communications started moving to carrier based systems and the waveforms became more complex, communication theorists stopped using the word baud and started using symbol and bit. The bit had several types as stated above where some are used for synchronization and other purposes and some are the data stream the user of the system gets.
Then 20-30 years ago computer telephone modems became popular and software people were involved in them. Software people did not come in contact with communication theorists and started making their own newly devised terms and definitions of older terms.
Now that telephone modems have complex modulations, the term baud is insufficient to describe their performance and symbol and bit should be used.
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