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. Closing Points

    Points that are paid at the time of closing of a mortgage transaction. ...
  2. Capitalization Change

    A modification in the issued and outstanding securities of a ...
  3. Points

    1. A 1% change in the face value of a bond or a debenture. 2. ...
  4. Event Risk

    1. The risk due to unforeseen events partaken by or associated ...
  5. Structural Change

    An economic condition that occurs when an industry or market ...
  6. Communism

    A political and economic ideology based on communal ownership ...
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. Investing

    In The Week Ahead: Market Returns Hinge On Greece And China

    The major U.S. stock indices finished last week essentially unchanged on the heels of two consecutive weeks of declines. My work suggests the stock market is within weeks of a significant bottom. ...
  3. 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.
  4. 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.
  5. ETFs & Mutual Funds

    This Blue Chip's Chart is a Red Flag for the Market

    Despite a strong rebound on Friday, all major U.S. indices closed lower for the week. The past two rebounds, in mid-December and in early January, were triggered by communication from the Federal ...
  6. 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.
  7. Markets

    A Common Base for Understanding Changes in Value

    A discussion of basis points as well as basis point calculations using Excel.
  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. 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.
  10. ETFs & Mutual Funds

    In the Week Ahead: Technicals Suggest Early December Weakness Won't Extend Into The New Year

    <p>All major U.S. stock indices finished in positive territory last week, led by the tech-heavy Nasdaq 100, which gained 2% and is up 20.8% ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. What is the average price-to-earnings ratio in the insurance sector?

    Discover the role the chip cycle plays in the electronics sector. The electronics sector is highly sensitive to shifts in ... Read Answer >>
  4. How does the risk of investing in the industrial sector compare to the broader market?

    Discover how the risk of investing in the industrial sector compares to the broader market. The industrial sector is highly ... Read Answer >>
  5. Why are bond yields calculated in terms of basis points?

    Find out why financial analysts and publications track and quote bond yields in basis points, or bps, rather than simply ... Read Answer >>
  6. What is the internet sector?

    Learn what products and services comprise the Internet sector and some of the key companies that shape it. Also what part ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center