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Definition of 'Cutoff Point'
The point at which an investor decides whether or not a particular security is worth purchasing. The cutoff point is very subjective and will be based on the personal characteristics of the individual investor. Some examples of personal characteristics that may determine the cutoff point include the investor's required rate of return and his or her risk aversion level.
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Investopedia explains 'Cutoff Point'
Because cutoff points are largely subjective, they will vary widely among investors. For example, if an investor has a lower required rate of return, he or she will likely pay more for the same security than a person with a higher required rate of return. This translates into a higher cutoff point for the first investor.
A cutoff point may also be considered a good "rule of thumb" when considering particular securities, as it may help the investor make more consistent investment decisions.
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Search results for 'Cutoff Point'
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http://www.investopedia.com/articles/retirement/10/top-9-benefits-403b-plans.asp
... additional contributions for those that have 15 years of service with the same employer
and have not contributed in excess of the cutoff point in previous years ...
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http://www.investopedia.com/articles/insurance/10/health-insurance-college-students.asp
... specifies coverage until 30 if the dependent child meets other requirements for
large business employees, while the 23rd birthday is the cutoff point for small ...
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http://www.investopedia.com/articles/fundamental-analysis/08/enterprise-multiple.asp
... However, using a strict cutoff is generally not appropriate because this is not
an ... company's peers and its historical average of a stock as a good entry point. ...
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http://www.investopedia.com/articles/06/munibond.asp
... bond at a discount and the discount is equal to or greater than a quarter point
per year ... Par Value, -, (Amount Allowable * Years to Maturity), =, De Minimis Cutoff ...
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http://www.investopedia.com/articles/trading/08/relative-strength.asp
... gains accumulate, and sell them when their performance deteriorates to the point
where they ... more than 12 funds are used in the calculation, the cutoff rank can ...
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