Structural Change
Definition of 'Structural Change'An economic condition that occurs when an industry or market changes how it functions or operates. A structural change will shift the parameters of an entity, which can be represented by significant changes in time series data. |
|
Investopedia explains 'Structural Change'A structural change can alter past trends or theories regarding stock returns. For example, let's say the futures market on oil is usually in contango, which means that oil today is more valued than oil in the future. If political instability and fears of scarce reserves arise, the oil market may undergo a structural change. Demand for future oil may increase, as people would fear lower supply levels for that period. Consequently, the market may shift to a backwards market, where the oil today is less valuable than future oil. |
Related Definitions
Articles Of Interest
-
Explaining The World Through Macroeconomic Analysis
From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone. -
Recession: What Does It Mean To Investors?
Understanding the business cycle and your own investment style can help you cope with an economic decline. -
All About EVA
Looking for a formula to determine whether a company is creating wealth? Time to learn all about economic value added. -
Economics Basics
Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more! -
Economic Indicators To Know
The economy has a large impact on the market. Learn how to interpret the most important reports. -
Uncovering Oil And Gas Futures
Find out how to stay on top of data reports that could cause volatility in oil and gas markets. -
Trading Is Timing
Learn how to make gains even if you don't get in at the right time. -
Leading Economic Indicators Predict Market Trends
Leading indicators help investors to predict and react to where the market is headed. -
Exploring Non-Dollar Currencies For Forex Trading
Learn how investments in foreign currencies can diversify your portfolio. -
Candlestick Charting: What Is It?
Discover the components and basic patterns of this ancient technical analysis technique.
Free Annual Reports