Conglomerates Sector

AAA

DEFINITION of 'Conglomerates Sector'

A category of stocks of large corporations with diverse and often unrelated business units. Conglomerates are sometimes referred to as multi-industry companies which are involved in a variety of business functions simultaneously.

INVESTOPEDIA EXPLAINS 'Conglomerates Sector'

Though comprised of diversified companies, the conglomerates sector closely follows the performance of the S&P 500 index. Conglomerates as a business type are less popular now than they were in the 1960s, mostly because large companies have difficulty managing unrelated business units effectively.

RELATED TERMS
  1. Capital Goods Sector

    A category of stocks related to the manufacture or distribution ...
  2. Energy Sector

    A category of stocks that relate to producing or supplying energy. ...
  3. Technology Sector

    A category of stocks relating to the research, development and/or ...
  4. Sector

    1. An area of the economy in which businesses share the same ...
  5. Basic Materials Sector

    A category of stocks that accounts for companies involved with ...
  6. Financial Sector

    A category of stocks containing firms that provide financial ...
Related Articles
  1. Fundamental Analysis

    Sector Rotation: The Essentials

    We look at how the market signals impending economic cycles and sector performance during each stage.
  2. Mutual Funds & ETFs

    4 Steps To Building A Profitable Portfolio

    This is a step-by-step approach to determining, achieving and maintaining optimal asset allocation.
  3. Mutual Funds & ETFs

    Spread Out Risk With Sector-Based ETFs

    These ETFs take the sector rotation strategy from institutional investors and puts it in your hands.
  4. Mutual Funds & ETFs

    An Introduction To Sector ETFs

    Find out how these specialized ETFs can give your portfolio the punch it needs.
  5. Mutual Funds & ETFs

    ETFs For Sector Rotation Strategies

    Find out how exchange-traded funds can take the bumps out of your investing style.
  6. Mutual Funds & ETFs

    An Introduction To Sector Mutual Funds

    Investing among several different sectors in the economy is a way to diversify your portfolio.
  7. Mutual Funds & ETFs

    ETF Bubble Or No Bubble?

    ETFs might be the recommendation of choice for the unimaginative financial advisor, but that doesn’t mean that the industry is in a bubble.
  8. Economics

    Worried About The Fed Hike?

    With the Nasdaq crossing the threshold and the broader equity bull market entering its 7th year, many investors are anxious that stocks are in a bubble.
  9. Stock Analysis

    Is It Time To Shun Altria Group?

    If you're in the market for a high-yielding dividend stock with an unmatched history of shareholder returns, then you can't do better than Altria Group .
  10. Economics

    What's The Impact On Equities If The Rates Hike?

    The Fed is on course for raising interest rates. True, that leaves the question of when (most likely June or September, but could be later) and how much.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center