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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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