Topple Rate

A A A

DEFINITION

The rate at which the group of leading companies, whether in industries or in market indexes, changes over time. This phenomenon is usually attributed to increased global competition and technology, although the existence of a topple rate is generally considered a healthy part of an advanced economy.

INVESTOPEDIA EXPLAINS

According to a study entitled "Extreme Competition" (2005), which appeared in The McKinsey Quarterly in 2005, the topple rate (as measured by membership in the S&P 500) doubled in the 20-year period from 1975-1995. This effect is especially prevalent in technology businesses because new cutting-edge technology is emerging continually.


RELATED TERMS
  1. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, that enables ...
  2. Creative Destruction

    A term coined by Joseph Schumpeter in his work entitled "Capitalism, Socialism ...
  3. Index

    A statistical measure of change in an economy or a securities market. In the ...
  4. Old Economy

    A term for the old blue chip industries that enjoyed fabulous growth during ...
  5. New Economy

    A buzzword describing new, high-growth industries that are on the cutting edge ...
  6. Brick And Mortar

    A traditional "street-side" business that deals with its customers face to face ...
  7. Commoditize

    The act of making a process, good or service easy to obtain by making it as ...
  8. S&P 500 Dividend Aristocrats

    Companies that have had an increase in dividends for 25 consecutive years. The ...
  9. Purple Chip Stock

    A term coined by portfolio manager John Schwinghamer to describe a stock that ...
  10. Blue-Chip Index

    A stock index that tracks the shares of the top-performing publicly traded companies. ...
Related Articles
  1. An Exploration Of The Development Of ...
    Economics

    An Exploration Of The Development Of ...

  2. What's the difference between old- and ...
    Investing

    What's the difference between old- and ...

  3. Invest In Large-Cap Value Stocks With ...
    Chart Advisor

    Invest In Large-Cap Value Stocks With ...

  4. A Look At Berkshire Hathaway's Many ...
    Stock Analysis

    A Look At Berkshire Hathaway's Many ...

  5. Always Bet On Berkshire Hathaway (And ...
    Stock Analysis

    Always Bet On Berkshire Hathaway (And ...

  6. Why Schlumberger Is A Name You Should ...
    Stock Analysis

    Why Schlumberger Is A Name You Should ...

  7. What The Charts Say About Big Tech Stocks
    Chart Advisor

    What The Charts Say About Big Tech Stocks

  8. Is Now The Time To Buy These Flagging ...
    Chart Advisor

    Is Now The Time To Buy These Flagging ...

  9. Apple? Google? Tesla? Which Will Be ...
    Fundamental Analysis

    Apple? Google? Tesla? Which Will Be ...

  10. The Alphabet Soup Of Stocks
    Investing Basics

    The Alphabet Soup Of Stocks

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center