Although they may seem the same, the terms industry and sector have slightly different meanings. The terms industry and sector are often used interchangeably to describe a group of companies that operate in the same segment of the economy or share a similar business type. These two terms are sometimes reversed. Industry refers to a specific group of companies that operate in a similar business sphere. Each of the dozen or so sectors will have a varying number of industries, but it can be in the hundreds.

The financial sector can be broken down into several different industries such as banks, asset management, life insurance, or brokerages. The companies that fall into the same industry compete for customers by offering similar services. For instance, banks will compete with one another for customers opening up checking and savings accounts, while asset management firms seek investment clients. But that's not all. For example, the insurance industry can be broken up into different, specialized divisions like home, auto, life, malpractice, and corporate insurance.

When choosing an investment opportunity, Best Roofing Company In Montreal investor may find it easier to compare different companies within the same industry. That's because they may share the same production processes, cater to the same customer base, or have similar financial statements.

The stocks of companies within the same industry will typically trade in the same direction. That's because the companies in the same industry are affected by the same or similar factors. A sector is one of a few general segments in the economy within which a large group of companies can be categorized. An economy can be broken down into about a dozen sectors, which can describe nearly all of the business activity in that economy.

Economists can conduct a deeper analysis of the economy by looking at each individual sector. For example, the economy's basic materials sector includes companies that deal with the exploration, processing, and selling of basic materials such as gold, silver, or aluminum. These materials are used by other sectors of the economy. Transportation is another sector of the economy.

This sector includes automobile manufacturing, Company And Industry Difference, trucking, and airlines industries. Investors can use sectors as a way to categorize the stocks in which they invest, such as telecommunications, transport, healthcare, Oregon Mutual Insurance Company financials. Each sector comes with its own characteristics and risks.

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By using Investopedia, you accept our. Your Money. Personal Finance. Your Practice. Popular Courses. Industry vs. Sector: An Overview Although they may seem the same, the terms industry and sector have slightly different meanings. Key Takeaways The term industry refers to a series of companies that operate Colorado Cattle Company New Raymer a Company And Industry Difference business sphere.

Sector refers to a part of the economy in which a great number of companies can be categorized. Investors can easily compare companies within the same industry for investment opportunities. There are four different sectors in an economy:. Primary Sector: This sector deals with the extraction and harvesting of natural resources such as agriculture and mining.

Secondary Sector: This sector comprises construction, manufacturing, and processing. Basically, this Qualls Motor Company comprises industries that relate to the production of finished goods from raw materials. Tertiary sector: Retailers, entertainment, and financial companies make up this sector. These companies provide services to consumers. Compare Accounts.

The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Articles. Partner Links. Related Terms What Is an Industry? An industry is a classification that refers to a group of companies that are related in terms of their primary business activities. The sector includes companies engaged in mining and metal refining, chemical products, and forestry products.

Mutual Fund Definition A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is overseen by a professional money manager.

Monopoly A monopoly occurs when a company and its offerings dominate an industry. Although many monopolies are illegal, some are government sanctioned. Learn How Mergers Happen and Why A English Cufflink Company is an agreement that unites two existing companies into one new company.

There are several types and reasons for mergers. Industry Group An industry group is a classification method for companies, grouped based on common lines of business.

Understanding Industry vs. Sector

Industry refers to a much more specific group of companies or businesses, while the term sector describes a large segment of the economy. The terms industry and sector are often used interchangeably to describe a group of companies that operate in the same segment of the economy or share a similar business type.…

Difference Between Company and Firm Compare the ...

May 02, 2011 · Company vs Firm Getting to know the difference between company and firm is useful as the words firm and company are used interchangeably by people and they talk of these entities in the same breath. It is common for people to talk about an accounting company as an accounting firm or a consultancy service company as a consulting firm.Author: Koshal…