breakpoint

breakpoint definition - business

breakpoint

  1. The cumulative level of purchases of shares in a mutual fund that is required before an individual purchaser can qualify for a reduced sales commission. Compare letter of intent 2. See also right of accumulation.
  2. The account balance at which the applicable interest rate changes. For example, a loan agreement might charge one interest rate on the first $1,000 and a somewhat lower interest rate on outstanding balances above $1,000.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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