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
Get the latest insights & exclusive offers delivered straight to your inbox.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
