Definition of Industry group:
Private industrial or professional organization that monitors and analyses industry trends and published industry documents.
An industry group is a classification method for individual companies or stocks that creates groupings based on common lines of business. The Global Industry Classification Standard (GICS), a joint effort by MSCI Inc. and Standard & Poor's (S&P), is regarded as the definitive categorization system for industry groups in the United States. Investors often track the performance of stocks across different groups because the fate of one company is often tied to broader trends within the industry.
According to MSCI and S&P, hundreds of asset managers, institutional and retail brokers, custodians, consultants, research analysts, and stock exchanges have adopted GICS. "The use of the GICS enables market participants to identify and analyze companies using a common global standard," the sponsors claim.
How to use Industry group in a sentence?
- GICS categorizes stocks into 24 industry groups and 11 sectors.
- Compartmentalizing stocks by sector or industry can help investors make sense of market moves and also identify potential investment opportunities.
- An industry group is a way of grouping individual companies or stocks based on common business lines.
- Market sectors are typically broader than industry groups, but some industry groups like energy and utilities are also market sectors.
Meaning of Industry group & Industry group Definition