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Used to characterize a group of securities that are similar with respect to maturity, type, rating, industry, and/or coupon.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


A set of securities or individual companies that are similar to each other. For example, all automotive companies in the United States are said to belong to the American automotive sector. See also: Industry.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A group of securities (such as airline stocks) that share certain common characteristics. Stocks that are particularly interest-sensitive are considered a sector.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


A sector is a segment of the economy that includes companies providing the same types of products or services.

For example, the utility sector provides electric power, natural gas, water, or a combination of these services. This sector may also include companies who produce power and those that trade it.

Companies within a sector tend to be reasonably consistent in their average earnings per share, price/earnings ratios (P/Es), and other fundamentals. But fundamentals may differ substantially from one sector to another. For example, some sectors are cyclical, rising and falling with changes in the economy while others are defensive, maintaining their strength despite economic ups and downs.

Since there's no official list of sectors, there can be confusion about how many sectors there are, what they're called, and what companies are included in them. For example, transportation is sometimes a standalone sector and sometimes included as part of the industrial sector.

Sector indexes, some of which are broad while others are very narrow, track many of the major sectors of the economy.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


a part of the economy that has certain common characteristics that enable it to be separated from other parts of the economy for analytical or policy purposes. A broad division may be made, for example, between economic activities undertaken by the state (the PUBLIC SECTOR) and those that are undertaken by private individuals and businesses (the PRIVATE SECTOR). The private sector, in turn, may be subdivided into the PERSONAL SECTOR (private individuals and households), the CORPORATE SECTOR (businesses supplying goods and services) and the FINANCIAL SECTOR (businesses providing financial services).
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Consider the case of a West Coast media company--one of Reicher's clients--which formed a subsidiary a few years ago when it decided to enter a new line of business. The venture did not go well, and some creditors were forced to sue for payment of their bills, which were ultimately settled for less than full value.
This article addresses: 1) the profit levels by line of business, 2) what determines the profit levels, 3) whether there are economies of scale in the industry, and 4) how indirect overhead cost affects the overall profitability.
There are four conditions which need to be satisfied in order for a line of business to be treated separately for purposes of applying the minimum coverage and nondiscrimination requirements.
Discount factors for the medical malpractice line of business are usually calculated on the basis of an occurrence book of business, which results in greater discount factors for longer occurrence policy payout patterns.
Within Capital Markets, equity and debt underwriting revenue, previously shared between the global markets and corporate and investment banking lines of business, is now reported entirely within the corporate and investment banking line of business.
Line of Business: Instant Noodle, Soy Sauce, Chilli Sauce,
CommonTime's mSuite5 upgrade offer includes centralized device management policy enforcement for mobile messaging and Line of Business (LOB) applications.
Sterling anticipates expanded capacity in the line of business in 2007 because of several new players entering the market.
How did you decide which line of business to enter?
Three trade associations--the American Bankers Association, the Financial Services Roundtable, and the Consumer Bankers Association--sued to overturn a part of the law that requires banks to give consumers the option to stop the sale of their information to an affiliate that is not in the same line of business. For instance, the state law says a customer could stop a bank from sharing data with an insurance company owned by the same corporation.