Stocks

Sector

A group of companies with related business activities, such as technology, energy or health care.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

Three companies classified as technology can have different customers and economics; sector labels do not remove company-specific research.

IMPORTANT DISTINCTION

Classification systems can differ, and one sector can contain companies with substantially different business models.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — investing glossary

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