Glossary

An industry in finance refers to a specific group of companies that produce similar products or services within a larger sector.

Industries are a more specific classification than sectors, allowing investors to compare and analyse companies with even more closely related business activities. This distinction helps investors identify trends and potential opportunities within a particular market segment. 💼🔍

For example, within the technology sector, there are various industries such as software, hardware, and internet services. A company like Microsoft would be part of the software industry, while Apple would be part of the hardware industry.

Fun fact: The North American Industry Classification System (NAICS) is a classification system used in the United States, Canada, and Mexico to classify businesses into industries based on their primary economic activity. It was developed in 1997 to replace the outdated Standard Industrial Classification (SIC) system and is updated every five years. 🌎📊