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Wall Street and American Stock Market
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Key sectors of the American markets
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The American stock markets have 11 key sectors. Check out the details in this video.
Based on their primary business activity, publicly traded companies in the American markets are classified into 11 sectors. The first is the Information Technology or IT sector, which consists of companies that develop or distribute technological goods or services. The second is healthcare, which has pharmaceuticals manufacturers, hospitals, healthcare equipment and service providers, and biotechnology companies. Up next, we have the financials sector, which consists of commercial banks, insurance companies, investment firms, and consumer lenders, among others. Then, there is the communication services sector, to which social media and traditional media companies, and cable, landline and mobile telephone carriers belong. Next up is the consumer discretionary sector, which includes companies that manufacture or provide discretionary or luxury goods and services. The American markets also includes the consumer staples sector, which consists of companies that provide necessary products. Then, we have the energy sector, which includes companies that explore, produce and sell oil, gas and consumable fuels. The utilites sector encompasses companies providing or generating utlities like water, electricity, or gas. Then, there is the industrials sector, which includes a wide range of manufacturing and service companies. The real estate sector is the newest addition to the S&P sectors. It includes equity real estate investment trusts and real estate management and development firms. And lastly, we have the materials sector, which consists of companies that provide the raw materials needed for other sectors. These 11 sectors are further classified into multiple industries. Now, here's a question. Can Indian companies belonging to any of these sectors list in American markets? Head to the next chapter of Smart Money to find out the details.