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FINRA Describes How GICS Helps Investors Analyze Markets

"As more companies cross industry lines, it's harder to determine what to compare them to, and that's how GICS sector classification can help."
FINRA Guide to Equity Market Sectors
"As more companies cross industry lines, it's harder to determine what to compare them to, and that's how GICS sector classification can help."
FINRA Guide to Equity Market Sectors

FINRA provided a primer on the system for classifying global equity market sectors to help investors make informed choices regarding mutual funds, ETFs and other equity investments.

In an Investor Insights article, FINRA detailed how the Global Industry Classification System ("GICS") allows investors to better understand and analyze equity market sectors. FINRA explained that GICS, a classification system developed by MSCI and S&P Dow Jones Indices, categorizes every publicly traded company into one of 11 primary sectors. Each sector is further broken down into industry groups, industries and sub-industries based on the company's main business activity.

For investments in funds, FINRA recommended investors use resources like the FINRA Fund Analyzer to compare different fund types and their sector allocations.

Primary Sources

  1. FINRA: Investor Insights: A Guide to Equity Market Sectors

Tags

Regulated Activities
Suitability and Consumer Protection
Regulated Entities
Broker-Dealers Traders / Investors / Counterparties
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
FINRA / MSRB / SEC Exchanges / SIPC / Accountants
Sub-Author
FINRA