That's what the Herfindahl-Hirschman Index is all about -- giving you a little insight into market diversity. Image source: Getty Images. Any time a new company is being formed, or a merger is ...

Using only the formula and the available data, the Herfindahl-Hirschman index for that industry is 50*2²=200, suggesting a highly competitive market. However, the Herfindahl-Hirschman index does ...