Industry Classification Benchmark

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The Industry Classification Benchmark (ICB) is a company classification system developed by Dow Jones and FTSE. It is used to segregate markets into sectors within the macroeconomy. The ICB uses a system of 10 industries, partitioned into 18 supersectors, which are further divided into 39 sectors, which then contain 104 subsectors.^[1][2]

The principal aim of the ICB is to categorize individual companies into subsectors based primarily on a company's "source of revenue or where it constitutes the majority of revenue." If a company is equally divided amongst several distinct subsectors, authorities from the Dow Jones and FTSE may be summoned to make a final judgement. Firms may appeal their classification at any time.

The ICB is used globally (though not universally) to divide the market into increasingly specific categories, allowing investors to compare industry trends between well-defined subsectors. The ICB replaced its predecessor FTSE on 3 January, 2006, and is used today by the NASDAQ and several other markets around the globe.

[edit] References

1. ^ Industry Classification Benchmark main page
2. ^ Industry Classification Benchmark structure (pdf)

[edit] See also

• Global Industry Classification Standard