The stock market is divided into sectors, which group companies by industry. Knowing sectors helps investors spread risk.
Here are some main sectors with company examples:
- Technology Google lead in hardware, software, and cloud computing.
- Finance Goldman Sachs represent banking and investments.
- Healthcare Moderna create medicines and vaccines.
- Energy Chevron cover oil, gas, and renewables.
- Consumer Discretionary Nike show retail, food, and lifestyle.
- Automotive Tesla bring traditional and electric vehicles.
- Entertainment Netflix dominate movies and streaming.
By spreading investments across sectors, an investor avoids depending only on one industry. For instance, combining tech with healthcare balances growth and stability.
Understanding sectors is key for beginners who want how to buy Quantum Computing diversify portfolios across the economy.
