I was just reading some financial/business jargon and I realized there are so many of them. Many a times I read up on them - wikipedia/investopedia do help a lot :-) - but after sometime I forget or I am just left with a faint idea of what those terms mean. So I am going to give a small introduction - most probably an excerpt from some other website with due acknowledgments - and will not limit myself to technical/management/financial jargon. Any term of interest with due ability to interest people will not be turned back from the door.

and antitrust. It is defined as the sum of the squares of the market

shares of each individual firm. As such, it can range from 0 to 1

moving from a very large amount of very small firms to a single monopolistic

producer. Decreases in the Herfindahl index generally indicate a loss

of pricing power and an increase in competition, whereas increases

imply the opposite. (From Wikipedia)

Gini coefficient: a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution. It is defined as a ratio with values between 0 and 1: the numerator is the area between the Lorenz curve

of the distribution and the uniform distribution line; the denominator

is the area under the uniform distribution line. Thus, a low Gini

coefficient indicates more equal income or wealth distribution, while a

high Gini coefficient indicates more unequal distribution. 0

corresponds to perfect equality (e.g. everyone has the same income) and

1 corresponds to perfect inequality (e.g. one person has all the

income, while everyone else has zero income). The Gini coefficient

requires that no one have a negative net income or wealth. (From Wikipedia)

**Herfindahl-Hirschman Index**or**HHI or H Index :**a measure of the size of firms in relationship to the industry and an indicator of the amount of competition among them. It is an economic concept but widely applied in competition lawand antitrust. It is defined as the sum of the squares of the market

shares of each individual firm. As such, it can range from 0 to 1

moving from a very large amount of very small firms to a single monopolistic

producer. Decreases in the Herfindahl index generally indicate a loss

of pricing power and an increase in competition, whereas increases

imply the opposite. (From Wikipedia)

Gini coefficient: a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution. It is defined as a ratio with values between 0 and 1: the numerator is the area between the Lorenz curve

of the distribution and the uniform distribution line; the denominator

is the area under the uniform distribution line. Thus, a low Gini

coefficient indicates more equal income or wealth distribution, while a

high Gini coefficient indicates more unequal distribution. 0

corresponds to perfect equality (e.g. everyone has the same income) and

1 corresponds to perfect inequality (e.g. one person has all the

income, while everyone else has zero income). The Gini coefficient

requires that no one have a negative net income or wealth. (From Wikipedia)

## No comments:

## Post a Comment