Market sector
Encyclopedia
The term market sector is used in economics
and finance
to describe a set of businesses that are buying and selling such similar goods
and services that they are in direct competition with each other. Analysts divide the stock market
itself into market sectors so that shares of companies that are in direct competition are listed alongside each other.
In the bond
market it refers to the division of the market by the type of issuer. E.g. government, state, corporate, or utility.
The term is also used in marketing
to describe sections of the mass market that can be specifically targeted in advertising campaigns. In this context it is correctly called Market segment
.
Markets are often split into sectors using GICS
.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
to describe a set of businesses that are buying and selling such similar goods
Product (business)
In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
and services that they are in direct competition with each other. Analysts divide the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
itself into market sectors so that shares of companies that are in direct competition are listed alongside each other.
In the bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
market it refers to the division of the market by the type of issuer. E.g. government, state, corporate, or utility.
The term is also used in marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
to describe sections of the mass market that can be specifically targeted in advertising campaigns. In this context it is correctly called Market segment
Market segment
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function...
.
Markets are often split into sectors using GICS
Global Industry Classification Standard
The Global Industry Classification Standard is an industry taxonomy developed by MSCI and Standard & Poor's for use by the global financial community. The GICS structure consists of 10 sectors, 24 industry groups, 68 industries and 154 sub-industries into which S&P has categorized all major...
.