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Sector

A broad group of companies that do similar business, such as energy or technology.

Market BasicsBeginner

Definition

The standard system, GICS, divides the market into 11 sectors: Communication Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Real Estate and Utilities. Sectors tend to behave differently at different points in the economic cycle.

How it is used

Investors compare sector performance to see where strength or weakness is concentrated.

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