Stock market sectors are groupings of companies that share a primary business operation and revenue source, such as energy or health care companies.
While these companies aren’t always in direct competition with each other, breaking up the economy by market sectors helps analysts compare stocks with similar business models. It can also help individual investors diversify their investment portfolios.
What are the stock market sectors in Canada, and how can they help you with your investing? Let’s take a closer look.
What is a stock market sector?
You can think of stock market sectors as simply a sorting method.
They help us take this big thing we call the “economy” and break it down into smaller (but still fairly large) parts. This, in turn, helps portfolio managers conduct research, as well as compare a stock’s performance against its larger sector. It can also help you create a well-rounded portfolio, with proper…
