Status Symbol

AAA

DEFINITION of 'Status Symbol'

A status symbol is an object which is meant to signify its owners' high social and economic standing. Although which things act as status symbols changes over time, they are always linked to the primary differences between the upper and lower classes within the society. In capitalist societies, status symbols are most often tied to monetary wealth.

INVESTOPEDIA EXPLAINS 'Status Symbol'

Expensive goods like luxury vehicles and large houses are mostly out of reach for lower economic classes, so these items serve as status symbols indicating that their owners are able to afford their extremely high prices. Since much of the utility derived from status symbols comes from their high price, an increased price for a status symbol may actually increase its demand, rather than diminish it. A product which exhibits this phenomenon is known as a Veblen good.

RELATED TERMS
  1. Luxury Item

    An item that is not necessary for living, but is deemed as highly-desired ...
  2. Luxury Automobile Limitations

    An annual limit on the amount of depreciation that can be taken ...
  3. Income Elasticity Of Demand

    A measure of the relationship between a change in the quantity ...
  4. Luxury Tax

    A tax placed on products or services that are deemed to be unnecessary ...
  5. McMansion

    A slang term that describes a large, opulent house that may be ...
  6. In-App Purchasing

    The purchase of goods and services from an application on a mobile ...
Related Articles
  1. Budgeting

    Stop Keeping Up With The Joneses - They're ...

  2. Options & Futures

    Budget Without Blowing Off Your Friends

  3. Retirement

    Two Roads: Debt Or Financial Independence?

  4. Credit & Loans

    The Disposable Society: An Expensive ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center