Chapter 14 Flashcards
What are the main reasons behind industry classification?
- Practicality
- Correlation of investment performance
Practicality
Factors
Relevant
Information
Common
Expert
Correlation of investment performance
Resources
Markets
Structure
Oil and Gas (Energy)
Extraction
Supply
“Energy”
-Large
-Commodity
-Risk
-Global
Basic materials
Chemical
Mining
Steel
Forestry
Intermediate
Industrials
Various
Supply
Capital
Building
Transportation
Distinctive features of industrials
Investment
Cyclical
Ahead
Government
Volatility
High
Gearing
Overseas
Consumer goods
Consumer
Durables
Non-durables
Severe
Basic
Distinctive features of consumer goods
Capital
Gearing
Profit
Healthcare
This group covers healthcare providers, medical equipment and supplies, as well as pharmaceuticals
Consumer services
Food, drug, and general retailers
Travel
Leisure
Economic cycle
Cyclical
Distinctive features of consumer services
Labour
Defensive
Domestic
Telecommunications
This group covers the providers of fixed line and mobile telephone services
Utilities
Continuously
Stable
Essential
Stable
Affected
Distinctive features of utilities
Physical
Monopolies
Regulation
Growth
Gearing
Domestic