Topple Rate

AAA

DEFINITION of 'Topple Rate'

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 'Topple Rate'

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, ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Brick And Mortar

    A traditional "street-side" business that deals with its customers ...
  4. New Economy

    A buzzword describing new, high-growth industries that are on ...
  5. Creative Destruction

    A term coined by Joseph Schumpeter in his work entitled "Capitalism, ...
  6. Old Economy

    A term for the old blue chip industries that enjoyed fabulous ...
RELATED FAQS
  1. What's the difference between old- and new-economy stocks?

    Old-economy stocks represent large, well-established companies that participate in more traditional industry sectors and ... Read Full Answer >>
  2. What is Apple's current mission statement and how does it differ from Steve Job's ...

    Apple's current mission statement is "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, ... Read Full Answer >>
  3. Why should I be looking at small cap stocks as a potential investment?

    Investors should look at small-capitalization stocks for upside growth potential and portfolio diversification. Despite these ... Read Full Answer >>
  4. Are mid-cap stocks more profitable than large-cap stocks?

    A mid-cap stock may perform better than a large-cap stock. The stock market can be stable or volatile, and many factors affect ... Read Full Answer >>
  5. What is the history of the S&P 500?

    The S&P 500 was introduced by Standard & Poor's in 1957 as a market index to track the value of 500 large corporations ... Read Full Answer >>
  6. What are common advantages of investing in large cap stocks?

    Most investors understand the importance of diversification through asset allocation within a portfolio, which is meant to ... Read Full Answer >>
Related Articles
  1. Economics

    An Exploration Of The Development Of Financial Markets

    We take a look at how the market was born and has continued to develop throughout history.
  2. Stock Analysis

    Why Not All Dow Stocks are Created Equal

    For the most part, the Dow has been on fire since March 2009. So profits of its components are growing, right?
  3. Chart Advisor

    Interested in Growth Stocks? See These 4 ETFs

    Given the rise in popularity of growth ETFs, there are several interesting growth stock choices for investors.
  4. Mutual Funds & ETFs

    Emerging Market ETFs EEM and VWO: Which is Better?

    Based on current conditions, one ETF will look more appealing than the other on the surface, but you always need to look below the surface.
  5. Stock Analysis

    How You're Probably Using a 3M Product Right Now

    3M specializes in businesses in which few aspiring entrants have neither the patience nor the capital to build market share.
  6. Investing Basics

    What's a Blue-Chip Stock?

    A blue-chip stock is stock of a company that has been operating successfully for many years and has a market capitalization in the billions. Most blue-chip companies are leaders in their industry. ...
  7. Trading Strategies

    General Electric: Good News/Bad News

    General Electric is generous to its shareholders, but that's not the only factor to consider.
  8. Investing

    What does "Blue Chip" Mean?

    Describing a business as “blue chip” comes from the game of poker, where blue chips are the most valuable.
  9. Chart Advisor

    Time To Rebalance? These ETFs Say So

    Caution ahead: 2014 has been very good to U.S. large-cap indexes, but lagging commodities and funds holding mid- to small-caps point to a slowdown.
  10. Mutual Funds & ETFs

    Will Stock Market VOOdo Continue?

    The Vanguard S&P 500 ETF (VOO) offers a relatively safe investment opportunity for people who aren't sure which way the market is headed.

You May Also Like

Hot Definitions
  1. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  2. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  3. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  4. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
  5. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  6. International Financial Reporting Standards - IFRS

    A set of international accounting standards stating how particular types of transactions and other events should be reported ...
Trading Center