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Industry Classification Benchmark (ICB)

The Industry Classification Benchmark (ICB) is a system used to categorize and classify companies based on their primary business activities. It provides a standardized way to group companies into industries, sectors, and sub-sectors for comparison and analysis. The ICB is widely used by stock exchanges, investors, and analysts to understand sectoral trends, make investment decisions, and compare performance across industries.

Example

A technology company is classified under the ICB's "Technology" sector, making it easier for investors to compare its performance with other companies in the same industry.

Key points

• A system for classifying companies by industry, sector, and sub-sector.

• Used for investment analysis, performance comparison, and sectoral trends.

• Standardized system adopted by stock exchanges and analysts globally.

Quick Answers to Curious Questions

The ICB categorizes companies into sectors and industries, allowing for easier comparison, analysis, and investment decision-making across markets.

Investors use the ICB to compare company performance within industries, identify sectoral trends, and allocate capital accordingly.

The ICB is one of several classification systems, like GICS, but offers its own unique sectoral breakdown and methodology for categorizing companies.
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