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Investing & the Stock Market vocabulary · Markets & Indices

Sector

Meaning in investing & the stock market, with examples

/ˈsektər/nounCore term

In investing & the stock market, sector means: A group of companies that do similar business, such as banking, energy or technology, used to compare companies and follow parts of the market.

In Turkish: sektör, endüstri grubu

How it is used

Analysts cover a sector, fund managers overweight or underweight sectors, and news reports say which sectors gained or lagged. Many exchanges publish sector indices, for example the BIST Banks index. 'Sector rotation' means money moving from one sector to another.

Example sentences

  1. The energy sector was the best performer this quarter as oil prices climbed.

  2. She covers the retail sector for a regional investment bank.

Common collocations

  • banking sector
  • sector index
  • sector rotation
  • cover a sector
  • defensive sector
  • indexA number that shows how the prices of a selected group of shares or bonds change over time, used to measure a whole market or sector.
  • benchmarkA standard, usually a market index, against which the performance of a fund, portfolio or investment manager is measured.
  • blue-chip stockA share in a large, well-known and financially strong company with a long record of stable earnings, often paying regular dividends.
  • diversificationSpreading money across different investments, sectors, countries or asset classes so that a loss in one of them has a smaller effect on the whole portfolio.

More terms: Markets & Indices

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This page explains English vocabulary for learners. It is not financial advice.