Business and Personal Finance Dictionary

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• SECTOR
  
  A sector is a group of stocks, often in one industry. The performance of any single stock in a sector can be measured against the performance of the sector as a whole, showing where that stock ranks in relation to its peers. Mutual funds that concentrate on the stocks of a specific sector are known as sector funds. These funds can be more volatile than other funds, reflecting the current strength or weakness of that sector in the overall economy. Technology stocks or health care stocks, for example, might be hot in some periods and in the doldrums in others.
  
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