Energy Sector

Categories: Metrics, Investing

The industry devoted to the production and supply of energy. It includes things like oil and natural gas producers, refiners, nuclear power companies, coal miners, wind farms, underwater algae compost reactors, and sweatshops where third-world children turn hand cranks to activate palm-leaf fans for rich tourists.

Typically, when we talk about sectors, we're talking specifically about the stock market. Since these companies are essentially competitors in providing us power, their shares get tracked together as the "energy sector."

Related or Semi-related Video

Finance: What is a Sector Fund?5 Views

00:00

Finance allah shmoop What is a sect or fund All

00:06

right Well star wars and star trek captains are all

00:09

these barking about setting coordinates for sector for stat or

00:14

whatever they say That means urgent in the future right

00:16

We'll hear space here's sector four and it's Ah well

00:19

kind of a slice of space Ok now come back

00:23

to earth gently And as it applies to mutual funds

00:26

it's kind of the same notion that is A sector

00:29

comprises a particular discipline of investing Like think of it

00:34

like a slice of the s and p five hundred

00:36

Like one sector of the economy is banking Another is

00:40

tech Another is telecommunications And then there's oil and transport

00:45

And consumer durables in each of these areas has hundreds

00:48

of ways in which investors can invest in that particular

00:52

sector That is there are index funds that invest in

00:55

it Yeah Mutual funds hedge funds private equity funds Even

00:59

venture capital funds Each of whom has a particular discipline

01:02

or focus on lee in one sector More less so

01:06

why would you want to sector fund Well if you

01:08

believe that oil was about tohave an explosion in demand

01:12

the good kind of explosion Then you'd want to beam

01:14

or exposed to it financially at least to its upside

01:18

Then say you would technology which you feel has gotten

01:21

too expensive in the markets And its best days are

01:24

behind it It's A little like putting several of your

01:26

eggs into one particular basket because you really like that 00:01:30.519 --> [endTime] basket

Find other enlightening terms in Shmoop Finance Genius Bar(f)