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Basics of sectors and industries

  • Sectors

Overview

In this course you'll learn about the basics of sectors and industries. We'll cover key definitions, how businesses are classified, the different types of classifications systems, and more.

Objectives

When you complete this course, you will:

  • Be familiar with the key terms and concepts of sectors and industries
  • Understand how companies might be classified, and what the potential implications may be
  • Identify the limitations of the various sector classification systems
Course Outline
Title Type Highlight
1. What are sectors and industries? A guide to frequently asked questions Article
With the breadth of information available about sector investing, it can be difficult to know where to start. Use this lesson to familiarize yourself with the basics of sector investing.
With the breadth of information available about sector investing, it can be difficult to know where...
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2. Classifying the world's businesses: a guide to industry sectors Article
This lesson provides an overview of the the Global Industry Classification Standard (GICS) and how each of these sectors may perform during specific business cycles.
This lesson provides an overview of the the Global Industry Classification Standard (GICS) and how...
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3. Know your sectors and industries Article
When investing using a sector-based strategy you should understand how companies might be classified, and what the potential implications may be. This can be especially important when investing in funds that are designed to track certain sectors or industries.
When investing using a sector-based strategy you should understand how companies might be...
More
4. The Global Industry Classification Standard (GICS): An objective language for sectors Article
The Global Industry Classification Standard (GICS) was created to provide a single, consistent set of global sector and industry definitions to meet the needs of the world financial community.
The Global Industry Classification Standard (GICS) was created to provide a single, consistent set...
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5. The limitations of sector classification systems Article
When pursuing any sector rotation strategy it is important that investors understand the limitations of the various sector classification systems.
When pursuing any sector rotation strategy it is important that investors understand the limitations...
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Because of their narrow focus, investments in one sector tend to be more volatile than investments that diversify across many sectors and companies.
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