The objective of an industry classification system is to facilitate sector- and industry-based analysis by investors. It is typically a hierarchical system for classifying each company based on the nature of its operations as well as market perception. This allows researchers, and investors to make informed decisions when measuring the performance of a stock, doing segment valuations, or identifying peer companies for a stock.

There are several industry classification systems. In this appendix we have contrasted two such systems that are used by investors:

• The GICS, which was jointly developed by Standard and Poor’s and MSCI

• The ICB, maintained by FTSE International

Each system has its own nomenclature, ...

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