DEFINITION of 'Standard Industrial Classification - SIC Code'

Standard Industrial Classifications areĀ four-digit codes that categorize companies by the type of business activities they engage in. These codes were created by the U.S. government in 1937 to facilitate analysis of economic activity across government agencies and within industries. They were mostly replaced in 1997 by a new system of six-digit codes called the North American Industry Classification System (NAICS).The new codes were adopted in part to standardize industry data collection and analysis in between Canada, the United States and Mexico which had entered into the North American Free Trade Agreement.

BREAKING DOWN 'Standard Industrial Classification - SIC Code'

The Standard Industrial Classification - SIC Codes were intended to improve communication within the US government, across industries and between countries and they were adopted in places outside the US, notably by the UK government. The Securities and Exchange Commission (SEC) is a major government agency that still uses SIC codes. The SIC codes are listed in a company's electronic data gathering, analysis and retrieval system (EDGAR) filings to indicate which industry the company is part of. For example, if you see SIC code 3721 on Hugh's Aerospace Corporation's EDGAR filing, you will know that the company is a part of the aircraft industry.

  1. Authorization Code

    An authorization code is an alphanumeric password that that identifies ...
  2. Internal Revenue Code - IRC

    The comprehensive set of tax laws created by the Internal Revenue ...
  3. Industry

    A classification that refers to a group of companies that are ...
  4. Tax Code

    A tax code is a federal government document that details the ...
  5. Customer Type Indicator Codes - ...

    A system that uses four different codes to indicate the types ...
  6. Open Source

    An open source program is one whose source code can be modified ...
Related Articles
  1. Insights

    SIC Vs. NAIC -An Introduction To Industry Classification Codes

    Standard Industrial Classification (SIC) Codes and the more recent NAICS codes are crucial to classifying data to measure industrial growth.
  2. Investing

    How Japan's Stewardship Code Works

    The new stewardship code in Japan aims to improve corporate governance. Will this voluntary code help beneficiaries of company pension funds as intended?
  3. Personal Finance

    How Much You Could Earn After Code School Boot Camp

    How much could you earn after computer code boot camp? Maybe north of $50k. But choose carefully.
  4. Taxes

    Why The Complex U.S. Tax Code Won't Be Simplified

    The tax code is 5296 pages long, and it still hasn't been abridged by Congress. Find out why.
  5. Trading

    NYSE Suspends Trading on Amazon, Google Over Data Glitch

    The NYSE suspended trading on five symbols, including Amazon and Google, due to a price scale coding issue.
  6. Taxes

    Who Does The Current Tax Code Benefit?

    Are the non-workers benefiting from the current tax code in any way or is it the wealthy who are still getting the big breaks?
  7. Tech

    How Education Has Transformed in the Digital Age

    Open online courses and coding boot camps are democratizing education globally.
  8. Tech

    10 New York City Startups That Emerged This Century

    Understand why the startup scene has grown, and discover why it has become a large part of New York City. Learn about the top 10 New York City startups.
  1. Where can I find fiscal year data for publicly traded corporations?

    Access fiscal year data for publicly traded corporations that is required by the government to be readily available to the ... Read Answer >>
  2. Bob is a registered representative who recently left ABC Securities and has now ...

    The correct answer is c. Monetary disputes within the securities industry are settled through the NASD Code of Arbitration, ... Read Answer >>
Hot Definitions
  1. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  2. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  3. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  4. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  5. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
  6. Watchlist

    A watchlist is list of securities being monitored for potential trading or investing opportunities.
Trading Center