Conglomerates Sector

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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.

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