We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What are Market Sectors?

Malcolm Tatum
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Sometimes referred to as market segments, market sectors are groups of businesses that produce similar goods and services for sale to consumers. This status places all companies involved in a particular market sector in competition with one another. The term is also used to identify groups of buyers that compete with one another to secure goods and services at the most cost-efficient rates.

The concept of market sectors has a slightly different application when it comes to investing. With both bond markets and stock markets, a sector refers to the classification of the entity that is issuing the security. In this application, it is much more common to hear the class referred to as a market segment, although each term is favored in different places around the world.

Whether used to identify groups of companies that buy or sell products, or issue securities, these sectors are usually classified using what is known as the Global Industry Classification Standard, or GICS. This means of classifying businesses organizes companies into ten broad sectors that are then divided into twenty-four industry groups. Those industry groups are further organized into sixty-eight industries, which in turn are arranged into a total of one hundred fifty-four sub-industries.

The ten basic market sectors as identified by GICS include several sectors that focus on electronic communications. Among these sectors are telecommunications services and information technology. Energy and utilities are also included in this list, along with materials and industrials, as are healthcare and financials. Consumers are represented with two sectors, consumer discretionary and consumer staples.

This comprehensive strategy for classifying businesses can be helpful when seeking investments in different market sectors, since it allows the investor to focus on one particular group or class within a given sector, or diversify the investments across a wider spectrum, while still remaining in the same class or type. By evaluating investments based on sector classes, an investor can get an idea of which sectors exhibit the most promise for growth in both the short-term and the long-term, and choose options that are in line with his or her personal financial goals.

Another application involves using sectors to bring more focus and definition to the sales and marketing process. By targeting specific market sectors, a business is able to build a reputation with certain types of businesses, assuming the business is able to offers products that are highly desirable within those sectors. This may involve identifying a given sector, then focusing on a sub-group within that sector to establish a presence. From there, the marketing effort can branch out to other sub-groups within the sector and make use of references from existing clientele to gain an audience with new prospects.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum , Writer
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Discussion Comments

Malcolm Tatum

Malcolm Tatum


Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.