Bifurcation (redirected from Bifurcations)

Bifurcation

A term used in finance that refers to a splitting of something into two separate pieces.

Notes:

Generally, this term is used to refer to the splitting of a security into two separate pieces for the purpose of complex taxation advantages. However, it is also used to describe two divergent conditions when analyzing or evaluating market situations.

See also: Derivative, Split-Up, Synthetic

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Bifurcation

When a non-linear dynamic system develops twice the possible solutions that it had before it passed its critical level. A bifurcation cascade is often called the period doubling route to chaos because the transition from an orderly system to a chaotic system often occurs when the number of possible solutions begins increasing, doubling each time.