| A sub-set of companies operating in the same industry with similar characteristics. In order to help investors compare the performance of similar companies, the share prices and financial ratios of these companies are reported together in newspapers. Example sectors might include: entertainment and hotels, general retailers, or electrical and electronic equipment. Each sector will have its own characteristics, being, for example, defensive or cyclical in nature. In deciding whether a share price is good or bad value, it can help to compare companies in the same sector. Data such as the P/E of a company can be compared to the average P/E of the whole sector using indices such as those produced by FTSE International and published in the FT<$>. The sectors are updated from time to time, with the latest FTSE sectors being launched at the start of 2006.
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