DEFINITION of 'Industry Classification Benchmark - ICB'

A company-classification system for stocks developed by Dow Jones and FTSE. The Industry Classification Benchmark (ICB) is a system that classifies both domestic and international stocks.

Every company has a place in the ICB, which has a four-tier, hierarchical industry-classification structure. The ICB uses a system of 10 industries, partitioned into 18 supersectors, which are further divided into 39 sectors, which in turn contain 104 subsectors.

BREAKING DOWN 'Industry Classification Benchmark - ICB'

The principal aim of the ICB is to categorize individual companies into subsectors based primarily on each company's major source of revenue. The ICB is adopted by stock exchanges representing over 65% of the world's market capitalization.

The ICB competes with the Global Industry Classification Standard (GICS) for equities, which was developed jointly by Morgan Stanley Capital International (MSCI) and Standard & Poor's. In practice, most of the same sector and industry designations exist in both standards.

RELATED TERMS
  1. Global Industry Classification ...

    A standardized classification system for equities developed jointly ...
  2. North American Industry Classification ...

    A new business classification system developed through a partnership ...
  3. Industry

    A classification that refers to a group of companies that are ...
  4. Industry Group

    A classification method for individual stocks or companies, usually ...
  5. Industry Bet

    A strategy whereby investors or portfolio managers increase or ...
  6. Commercial Trader

    A classification used by the Commodity Futures Trading Commission ...
Related Articles
  1. Investing

    GICS Vs. ICB: Competing Systems For Classifying Stocks

    Global Industry Classification Standards and the Industrial Classification Benchmark separate stocks into sectors.
  2. Investing

    Explaining Industry

    The term industry refers to a classification of companies that share similar business activities.
  3. Investing

    An Introduction To Sector ETFs

    Find out how these specialized ETFs can give your portfolio the punch it needs.
  4. Managing Wealth

    Real Estate Gets Its GICS

    A dedicated sector classification gives real estate securities the recognition they deserve.
  5. Investing

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  6. Investing

    5 Stocks in the New S&P 500 Real Estate Sector (SPG, AMT)

    Real Estate will have its own sector on the S&P 500 index from August 31 onwards. Major banks expect substantial inflow to the new sector.
  7. Trading

    Trading Systems: Run With The Herd Or Be A Lone Wolf?

    Find out if taking the path less traveled will work in your favor - or against it.
  8. Investing

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  9. Insights

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  10. Investing

    Newly Launched S&P Internet ETF: XWEB US (XWEB)

    Investors who like to increase exposure to internet ventures in the tech and consumer discretionary sectors may be interested in the US-traded XWEB ETF.
RELATED FAQS
  1. Under the Investment Company Act of 1940, which of the following is not a formal ...

    The correct answer is d. A mutual fund is technically registered under the ’40 Act as an open-end management investment company. ... Read Answer >>
  2. What are the main benchmarks that track the performance of the financial services ...

    Learn about some of the primary benchmarks utilized by investors and analysts to track the performance of the financial services ... Read Answer >>
  3. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ... Read Answer >>
  4. What are the main benchmarks that track the banking sector?

    Read about the most important benchmarks that can be used to track the banking sector, and why banking benchmarks tend to ... Read Answer >>
  5. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
  6. How do you compare the Dow Jones Industrial Average (DJIA) and the Nasdaq?

    The Dow Jones and Nasdaq work in different ways to signal market trends. Learn which is best for you. Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center