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.

BREAKING DOWN '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. Hard-Coded Stock

    This is a term that refers to a company's stock symbol or ticker ...
  2. Positional Goods

    Goods which act as a status symbols, signaling their owners' ...
  3. O

    A component of a stock symbol that indicates the shares of that ...
  4. Currency Symbol

    A graphical symbol used as a substitute for the actual name of ...
  5. Ticker Symbol

    An arrangement of characters (usually letters) representing a ...
  6. A

    A Nasdaq stock symbol specifying that the stocks are Class "A" ...
Related Articles
  1. Trading

    Keeping Securities Clear With Ticker Symbols

    A ticker symbol is a group of characters that represent a specific, publicly traded security that’s listed on an exchange.
  2. Trading

    Understanding The 2010 Options Symbology

    There is a wealth of information in the expanded option symbols, but they should make things easier for traders.
  3. Insights

    Veblen Good

    Named after economist Thorstein Veblen, who introduced the term "conspicuous consumption," a Veblen good is one whose demand increases as its price increases because consumers see it as an exclusive ...
  4. Insights

    Main Characteristics of Capitalist Economies

    Commerce is based on the principles of capitalism, but there are few, if any, examples of pure capitalism except in theory.
  5. Investing

    Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
  6. Investing

    Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  7. Investing

    NYSE Glitch Halts Trading in 199 Tickers (ICE)

    A technical glitch described as a "critical issue" has halted trading in 199 tickers on the New York Stock Exchange.
  8. Insights

    What is Demand?

    Demand is the economic term for the cumulative wants and desires of consumers as they relate to a particular good or service. Generally speaking, if all other factors remain constant, as demand ...
  9. Insights

    The US Will Remain the World's Reserve Currency

    Learn why the U.S. dollar is not in any danger of losing its reserve currency status and understand how China is pushing the yuan to be a reserve currency.
RELATED FAQS
  1. Do hedge funds have ticker symbols?

    Discover whether or not hedge funds have ticker symbols, where you can find ticker symbols and the significance of a ticker ... Read Answer >>
  2. Why do some stock symbols have three letters while others have four? What is the ...

    Stocks found on the New York and American Stock Exchange will normally have symbols with three letters or fewer. On the other ... Read Answer >>
  3. Why did my stock's ticker symbol change?

    When a ticker symbol changes it's usually not a good sign. Tickers of publicly traded companies generally only change for ... Read Answer >>
  4. What are the fifth-letter identifiers on the Nasdaq?

    All of the companies traded on the Nasdaq have four-lettered tickers, which are representative of the actual company. For ... Read Answer >>
  5. Why do all mutual fund tickers have an X at the end?

    It's true that all mutual funds' tickers have an X at the end of their symbol. The reason for this is to distinguish between ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center