Industry Group

Definition of 'Industry Group'


A classification method for individual stocks or companies, usually grouped based on common lines of business. Although there is no official standard for industry group classification, Investor's Business Daily has a proprietary model that is popular with 197 industry groups, and Reuter's Baseline uses another, with about 185. Most designations will have somewhere between 150 and 200 industry groups in total, with the sum total of industry groups capturing nearly all of the economy as can be measured by the GDP.

Investopedia explains 'Industry Group'


For example, some general industry group classifications are drug retailers, forestry products and semiconductor equipment.

Industry group-level research is a good place for investors to start when doing individual company research - most of the companies within one industry group tend to rise and fall as a whole. By knowing the trends in place within the industry group, investors can better understand the investment potential of the companies within that group.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Direct Consolidation Loan

    A loan that combines two or more federal education loans into a single loan. A Direct Consolidation Loan allows the borrower to make a single monthly payment. The loan is facilitated by the U.S. Department of Education and does not require borrowers to pay an application fee.
  2. Through Fund

    A type of target-date retirement fund whose asset allocation includes higher risk and potentially higher return investments "through" the fund's target date and beyond.
  3. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first.
  4. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version of success in a society where upward mobility is possible for everyone. The American dream is achieved through sacrifice, risk-taking and hard work, not by chance.
  5. Texas Ratio

    A ratio developed by Gerald Cassidy and other analysts at RDC Capital Markets to measure the credit problems of particular banks or regions of banks. The Texas ratio takes the amount of a bank's non-performing assets and loans, as well as loans delinquent for more than 90 days, and divides this number by the firm's tangible capital equity plus its loan loss reserve.
  6. Amortized Bond

    A financial certificate that has been reduced in value for records on accounting statements. An amortized bond is one that is treated as an asset, with the discount amount being amortized to interest expense over the life of the bond. If a bond is issued at a discount - that is, offered for sale below its par (face value) - the discount must be treated either as an expense or it can be amortized as an asset.
Trading Center