DEFINITION of 'Logo'

A graphical mark used to identify a company, organization, product or brand. Logos can be displayed along side - or in lieu of - a company's name in order to generate awareness of the company's association with a particular product or service. The particular graphic used may be a stylized version of the company lettering (such as a wordmark) or abstract (such as a shape unrelated to the company lettering).

BREAKING DOWN 'Logo'

Logos are an example of intangible assets because they hold value, but not in a physical form. Logos have become an integral part of a company's identity, and are used heavily in the marketing of products and services. A well-recognized logo can increase a company's goodwill, and is trademarked for intellectual property protection.

Historically, pictures were used to convey messages to individuals who were unable to read. A picture of a loaf of bread would be used on a sign to denote a baker. Even if the word "bread" was not displayed, consumers knew the type of product available at that store.

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