January 2014
Beginner
272 pages
5h 54m
English
Content preview from Understanding Stocks 2E, 2nd EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Classifying Stocks: Value, Income, and Growth
If you want to understand the stock market, you should learn the different ways in which people classify and identify stocks. In fact, stocks are often identified by their sector or industry.
Stock Sectors
As mentioned earlier, a sector is a group of companies that loosely belongs to the same industry and provides similar products or services. Examples of stock sectors include airlines, software, chemicals, oil, retail, automobiles, and pharmaceuticals. Understanding sectors is important if you want to make money in the stock market. The reason is simple: No matter how the market is doing and no matter what the condition of the economy, there are always sectors that are doing well and sectors that ...
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