Industry Classification Benchmark - ICB

AAA

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.

INVESTOPEDIA EXPLAINS '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. Growth Industry

    A sector of the economy experiencing a higher-than-average growth ...
  2. Declining Industry

    An industry where growth is either negative or is not growing ...
  3. Emerging Industry

    A group of companies in a line of business formed around a new ...
  4. Global Industry Classification ...

    A standardized classification system for equities developed jointly ...
  5. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  6. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Great Company Or Growing Industry?
    Markets

    Great Company Or Growing Industry?

  3. GICS Vs. ICB: Competing Systems For ...
    Mutual Funds & ETFs

    GICS Vs. ICB: Competing Systems For ...

  4. What is the difference between an industry ...
    Investing

    What is the difference between an industry ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center