The stock market is divided into sectors, which group companies by industry. Knowing sectors helps investors diversify.
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 NextEra Energy cover oil, gas, and renewables.
- Consumer Discretionary Nike show retail, food, and lifestyle.
- Automotive Toyota bring traditional and electric vehicles.
- Entertainment Disney 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 Super Micro Computer diversify portfolios across the economy.
