Inflection Point

What is an 'Inflection Point'

An inflection point is an event that results in a significant change in the progress of a company, industry, sector, economy or geopolitical situation. An inflection point can be considered a turning point after which a dramatic change, with either positive or negative results, is expected to result. Companies, industries, sectors and economies are dynamic and constantly evolving. Inflection points are more significant than the small day-to-day progress that is made and the effects of the change are often well-known and widespread.

BREAKING DOWN 'Inflection Point'

Andy Grove, Intel's co-founder, described a strategic inflection point as "an event that changes the way we think and act." Inflection points can be a result of action taken by a company, or through actions taken by another entity, that has a direct impact on the company. Regulatory changes, for instance, could lead to an inflection point for a corporation that was previously held back by regulatory compliance issues. Inflection points in technology include the advent of the Internet and smart phones. Politically, an inflection point can be illustrated by the fall of the Berlin Wall or the fall of Communism in Poland and other Eastern Bloc countries.

RELATED TERMS
  1. Regulatory Risk

    The risk that a change in laws and regulations will materially ...
  2. Closing Points

    Points that are paid at the time of closing of a mortgage transaction. ...
  3. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote ...
  4. Market Dynamics

    The pricing signals that are created as a result of changing ...
  5. Event Study

    An empirical study performed on a security that has experienced ...
  6. Technical Progress Function

    An economic relation which seeks to explain changes in the level ...
Related Articles
  1. Investing

    In The Week Ahead: Fear Could Spark A Deeper Decline

    Editor's Note: You probably can't tell from the recent market activity, but we're in the midst of a short-term bull market. While most regular investors don't even realize it's going on, the ...
  2. Markets

    How to Manage Corporate Change in the Modern Economy

    Change can make employees uncomfortable, but these keys can help ease the transition and increase morale.
  3. Managing Wealth

    4 Signs It’s Not the Right Time to Raise Money

    It’s a really good time to be the CEO of a late-stage startup. However, even if you can raise a lot of money for very cheap, there are still some times when it’s not such a good idea.
  4. Investing

    Intel Chairman and CEO Andrew Grove Dies at 79

    Andrew Stephen Grove, who served as Intel Corp.'s (INTC) CEO from 1987 to 1998 and oversaw the company's rise to Silicon Valley dominance, passed away Tuesday at the age of 79.
  5. Markets

    What's The Difference Between Industry And Sector?

    The terms industry and sector are often used interchangeably to describe companies that operate in the same segment of the economy, or that share a similar business type. But they actually have ...
  6. Markets

    A Common Base for Understanding Changes in Value

    A discussion of basis points as well as basis point calculations using Excel.
  7. Markets

    How Points Relate to Financial Instruments

    Points usually refer to the measurement of some change in a financial instrument’s value.
  8. Investing

    3 Ways To Tell If Your Stock Has Bottomed

    No one can call stock bottoms with absolute certainty, but there are some common trends that appear when stocks are about to hit bottom.
  9. ETFs & Mutual Funds

    Shifting Focus To Sector Allocation

    Investing in sectors may trump international investments for providing diversification.
  10. Markets

    The Strong Dollar’s (Real) Toll On Tech Stocks

    A large portion of U.S. technology companies’ sales occur overseas, given the strong international business and consumer demand from many U.S. tech firms.
RELATED FAQS
  1. What are the top investing strategies for investing in the utility sector?

    Employ the right strategies when investing in the utility sector, and you can see consistent returns with less risk than ... Read Answer >>
  2. What does a falling open interest on a stock signal?

    Learn what falling open interest on a stock signals. Open interest is like volume for options. It is considered a leading ... Read Answer >>
  3. What is the history of the S&P 500?

    Discover the history of the S&P 500, which sophisticated market participants consider to be the best index to understand ... Read Answer >>
  4. What is the difference between an industry and a sector?

    The terms industry and sector are often used interchangeably to describe a group of companies that operate in the same segment ... Read Answer >>
  5. What are the primary risks an investor should consider when investing in the Internet ...

    Learn what risks to look out for when considering investments in the Internet sector in order to maximize potential profits ... Read Answer >>
  6. What are the primary benchmarks that track the electronics sector?

    Learn about the primary benchmarks that track the electronics sector. The electronics sector is the backbone of the technology ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center