Sector

What Does Sector Mean?
1. An area of the economy in which businesses share the same or a related product or service.

2. A group of securities in the same industry or market.

Investopedia explains Sector
1. Dividing an economy into different like pieces allows for more in-depth analysis of the economy as a whole. Any economy can be divided into sectors, such as the economy of a particular city, or the global economy. The oil and gas sector is an example of an economic sector.

2. It is common for analysts to specialize in certain sectors. For example, at a large research firm, an analyst may cover only pharmaceutical companies. Investment funds often specialize in a particular economic sector, a practice known as sector investing.

Related Terms

Best Of Breed
Exchange Traded Fund - ETF
Industry
Industry Group
Mutual Fund
Net Lending
NY Empire State Index
Sector Breakdown
Sector Fund
Sector Rotation
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What is the difference between an industry and a sector?

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