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Both are units of data transmission rates through a communication medium. Baud rate signifies symbol rate. How many symbol changes are transmitted per second. Symbols can contain one bit or more (e.g. 3-bit symbols). Bit is smallest unit in digital transmission or digital communication. Bit has only two states but symbols can have more than 2 states. So symbol may may represent more than one binary bit and so baud rate may or may not be equal to bit rate.
Also see
http://en.wikipedia.org/wiki/Bit_rate
http://en.wikipedia.org/wiki/Baud
- Neeraj Sharma
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