Sector
InvestingGlossary term
Definition
A group of companies in the same industry or business area. The 11 stock market sectors include technology, healthcare, financials, energy, and consumer goods.
Related terms
- DiversificationA risk management strategy that mixes different types of investments within a portfolio. The goal is to reduce exposure to any single asset or risk.
- StockA share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
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