Basics
What is Sector?
A group of companies in the same type of business
Full Explanation
The stock market is divided into sectors — Technology, Healthcare, Finance, Energy, and more. Companies in the same sector tend to move together when news hits their industry.
Real-World Example
Apple, Microsoft, and Nvidia are all in the Technology sector.
Pro Tip
Diversifying across sectors reduces your risk — don't put everything in one industry.
Related Basics Terms
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