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What Is the Purpose of the Gini Coefficient? What Can

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What is the purpose of the Gini coefficient? What can the calculation of the Gini coefficient tell us about an ancient or a modern society?


Definitions:

Price-Earnings Ratio

A valuation metric for a company, calculated by dividing its current share price by its per-share earnings.

Net Income

The total profit of a business after all expenses, including taxes and operating costs, are subtracted from total revenues.

Weighted-Average Common Shares

The weighted-average common shares are calculated to represent the number of shares outstanding over a period, adjusted for changes such as stock splits.

Income Stocks

Stocks that regularly pay high dividends, typically associated with well-established companies with stable earnings.

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