Inflection Point

AAA

DEFINITION of 'Inflection Point'

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.

INVESTOPEDIA EXPLAINS '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. Behavioral Finance

    A field of finance that proposes psychology-based theories to ...
  2. Behavioral Economics

    The study of psychology as it relates to the economic decision ...
  3. Market Jitters

    Feelings of nervousness created by uncertainty or fear about ...
  4. Reversal

    A change in the direction of a price trend. On a price chart, ...
  5. Fulcrum Point

    The turning point in which a security or the economy in general ...
  6. Negative Option Deals

    A dubious business practice that involves supplying a typically ...
RELATED FAQS
  1. What are the top investing strategies for investing in the utility sector?

    The utility sector consists of companies centered around delivering electricity, water, gas and other utility services. Many ... Read Full Answer >>
  2. Why is the Zig Zag indicator important for traders and analysts?

    Investors use technical indicators to help them predict with confidence what is going to happen with a security price. These ... Read Full Answer >>
  3. How can I calculate funds from operation in Excel?

    In general, the terms "work in progress" and "work in process" are used interchangeably to refer to products midway through ... Read Full Answer >>
  4. When does Q4 start and finish?

    Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins ... Read Full Answer >>
  5. When is it useful to look at a company's fixed asset turnover ratio?

    It is useful to look at a company's fixed asset turnover ratio when an outside observer, such as an investor, wants to know ... Read Full Answer >>
  6. What is the difference between perfect and imperfect competition?

    Perfect competition is a microeconomics concept that describes a market structure controlled entirely by market forces. In ... Read Full Answer >>
Related Articles
  1. Active Trading

    What Is Market Efficiency?

    The efficient market hypothesis (EMH) suggests that stock prices fully reflect all available information in the market. Is this possible?
  2. Options & Futures

    Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  3. Retirement

    This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  4. Investing Basics

    Removing The Barriers To Successful Investing

    Learn how to stop using emotion and bad habits to make your stock picks.
  5. Options & Futures

    Market Problems? Blame Investors

    Investors are only human, and their irrational behavior can often move the market.
  6. Economics

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  7. Economics

    What is Involved in Inventory Management?

    Inventory management refers to the theories, functions and management skills involved in controlling an inventory.
  8. Economics

    What Does Accretive Mean?

    In the business world, accretive most often to refers to additional growth from outside sources.
  9. Economics

    Explaining Prime Cost

    Prime cost is a way of measuring the total cost of the production inputs needed to create a given output.
  10. Economics

    What are Pork-Barrel Politics?

    Pork-barrel politics is a form of patronage whereby politicians favor their constituents in exchange for benefits such as campaign donations and votes.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center