AM Best provides credit ratings for the insurance industry. AM Best rates an insurer's claims-paying ability and credit quality of its obligations.

The San Francisco Earthquake of 1906: An insurance Perspective

$182 Billion Commitment to AIG During Financial Crisis Now Fully Recovered After Pricing of $18.0 Billion Treasury Common Stock Sale

AM Best Downgrades Ratings of American International Group, Inc. and Life Subsidiaries

AM Best is a credit rating agency focused exclusively on the worldwide insurance industry. AM Best's financial strength ratings range from the highest A++ to B+, to 10 vulnerable ratings, ranging from B to S, with the lowest indicating a rating was suspended.
Founded in New York City in 1899 by Alfred M. Best, the privately held company is headquartered in Oldwick, New Jersey. AM Best assigns credit ratings that assess an insurance company's creditworthiness, which refers to the likelihood the company will default on its obligations. Today, consumers will often refer to AM Best's credit ratings to check on the financial stability and reputation of an insurance company before purchasing an insurance product. Financial professionals and investors that are looking to invest in an insurance company through a stock or bond purchase will review the company's AM Best ratings as part of their research and due diligence.

AM Best

Acceptance testing trials a new product before it goes into production to see if its specifications have been met.

Acceptance testing, in the context of the engineering and software industries, is a functional trial performed on a product or prototype before it is put on the market or delivered, to decide whether the specifications or contract have been met. Types of acceptance testing include:
Alpha & Beta Testing
Contract Acceptance Testing
Regulation Acceptance Testing
Operational Acceptance testing
Alpha and beta testing are examples of acceptance testing. The acceptance testing process, which is also known as end-user testing, operational acceptance testing, or field testing acts as a form of initial quality control to identify problems and defects while they can still be corrected relatively painlessly and inexpensively. There are several methods for acceptance testing including alpha/beta testing, which rolls out a product in an initial alpha phase to spot obvious errors followed by introducing it to beta testers to identify more nuanced or minor mistakes. Acceptance testing, in the context of the engineering and software industries, is a functional trial performed on a product or prototype before it is put on the market or delivered, to decide whether the specifications or contract have been met.

Acceptance Testing

Address commission is a fee paid by vessel owners to charterers -- parties who own cargo in a trade scenario -- to cover business costs.

Address commission is a fee paid by vessel owners to charterers. For example, a time charter enforces costs that are related to the employment duration of a vessel, while a voyage charter's fees are dependent on the total weight of the cargo being transported. The type of ship and charter used determines the total fees and address commissions incurred by ship-owners and the charterers. As a result, the total fees incurred by the charterer are reduced by the amount of the address commission. The charterer uses this address commission to cover business costs.

Address Commission

Assembly service is the combination of a number of small shipments from multiple parties into a single shipment.

The term assembly service refers to a shipping or transportation service in which a number of small shipments are combined into a single one. Assembly service is a service provided by companies in the shipping and transportation sector. **Better quality control**: Assembly service shipping allows companies to get control of their goods sooner, which allows them to have more control over the timeline of deliveries. Customers who use this type of shipping service are often able to get better freight rates and reduced shipping costs.

Assembly Service

Athleisure is a fashion trend that combines athletic clothing with comfort, style, and aesthetically appealing designs.

Lululemon Athletica Inc - Stock Price History - LULU

Millennials, Athleisure, and E-commerce Continue to Drive Apparel Sales, But Growth Has Slowed

Sport Leisure Expected to Drive U.S. Footwear Sales Growth through 2021, and Surpass Fashion as Largest Category, Reports NPD

As demand for athleisure apparel increased during the mid- and late-2010s, the athleisure sector provided opportunities for growth investors. Lululemon's stock (LULU) has been volatile, but it rose substantially between 2017 and 2020.﻿﻿ In large part, Lululemon had considerable success due to the rising popularity of athleisure and the company's position in the center of that trend. That larger trend could support the continued growth of both athleisure and fast-casual for some time. The athleisure trend was also a primary driver of growth for the apparel industry.

Athleisure

The Baby Bells were the U.S. regional telephone companies that were formed following the breakup of AT&T's monopoly, commonly referred to Ma Bell, n 1984.

United States v. American Tel. and Tel. Co., 552 F. Supp. 131 (D.D.C. 1983)

For Immediate Release Wednesday, November 20, 1974

THE AT&T DIVESTITURE: WAS IT NECESSARY? WAS IT A SUCCESS?

The Baby Bells have grown up and changed to the point that the term is no longer used but the idea remains useful for understanding the late 20th-century telecommunications market, especially when reading primary sources.
The Baby Bells helped to free consumers from the drawbacks of AT&T's monopoly in the telephone business. Nine Baby Bells were assigned a portion of the Bell trademark—seven Baby Bells or Regional Bell Operating Companies, as well as two smaller companies held by AT&T. At the time, AT&T was the only provider of telephone services in much of the United States, providing anywhere between 80% to 85% of lines in 1982, while most of the telephone equipment used was produced by Western Electric.﻿﻿﻿ This gave AT&T nearly complete control over both telephone service and equipment in the country. The Baby Bells were the regional telephone companies created due to the antitrust breakup of AT&T or Ma Bell in 1984.

Baby Bells

The Big Three refers to the three largest U.S. car manufacturers: General Motors, Chrysler, and Ford. Read about the new challenges the Big Three face.

North American Automotive Market Report 2020-2025

Global automotive market share in 2019, by brand

The Big Three in the automotive industry is a reference to the three largest car manufacturers in the United States: General Motors Company (GM), Fiat Chrysler Automobiles (FCAU), and Ford Motor Company (F). Volkswagen came in second with a 7.6% market share, followed by Ford at 5.6%, Honda at 5.5%, and Nissan at 5.2%.﻿﻿ Clearly, the Big Three—which once dominated the global markets—have faced strong competition, losing their market share to automakers from Japan, South Korea, and Europe. As of September 30, 2020, General Motors had a market cap of $41.4 billion, Ford had a market cap of $27.3 billion, and Fiat Chrysler had a market cap of $24.7 billion. In comparison, Toyota's market cap for the same time period was a significantly higher $183.4 billion, an indication that the market values Toyota as a company more than the Big Three. The Big Three in the automotive industry is a reference to the three largest car manufacturers in the United States: General Motors Company (GM), Fiat Chrysler Automobiles (FCAU), and Ford Motor Company (F).

Big Three Automakers

Bioequivalence represents the similarity between two drugs that have the same effect on a patient.

Primer on Generic Drugs and A Primer on Generic Drugs and Bioequivalence: an overview of the Bioequivalence: an overview of the generic drug approval process generic drug approval process

Bioequivalence is the biochemical similarity of two (or more) drugs that share the same active ingredient(s) and desired outcome(s) for patients. Instead, generic drugs only have to be bioequivalent, which means the company applying for approval must perform the following steps:
Test the generic drug against the brand-name drug on two small groups of test subjects. For a generic drug to be bioequivalent to a name-brand version, the drug manufacturer must get the U.S. Food and Drug Administration’s (FDA) stamp of approval. When a generic drug is not bioequivalent to the name-brand version, it might still be approved for another use, but not be approved as a substitute for the name-brand version. Demonstrate through statistical analysis that any difference in the drug’s bioavailability in participants taking the brand name version versus participants taking the generic version is not clinically significant.

Bioequivalence

Blue ocean is a slang term referring to the uncontested market space of an unknown industry or innovation.

Blue ocean is an entrepreneurship industry term created in 2005 to describe a new market with little competition or barriers standing in the way of innovators. Ford created a new manufacturing process for mass-producing standardized cars at a fraction of the price of its competitors.
The Model T's market share jumped from 9% in 1908 to 61% in 1921, officially replacing the horse-drawn carriage as the principal mode of transportation.
Apple Inc. found a blue ocean with its iTunes music download service. Apple made iTunes a win-win-win for the music producers, music listeners, and Apple by creating a new stream of revenue from a new market while providing more convenient access to music. A blue ocean market business leader has first-mover advantages, cost advantages in marketing with no competition, the ability to set prices without competitive constraints, and the flexibility to take its offering in various directions. Blue ocean is an entrepreneurship industry term created in 2005 to describe a new market with little competition or barriers standing in the way of innovators.

Blue Ocean

Building activity indicators are economic reports that provide insights into demand for residential, commercial and industrial construction activity.

Value Added by Private Industries: Construction as a Percentage of GDP

NAHB/Wells Fargo Housing Market Index (HMI)

Housing Starts: Total: New Privately Owned Housing Units Started

ABI May 2018: Firm billings continue to grow

Building activity indicators are economic reports or indexes that provide analysts and investors with information about the present and projected level of demand for residential, commercial, and industrial construction. Building activity indicators are statistics that monitor such data as building permits issued, construction of buildings during a particular period, construction spending, the number of construction workers, and even the number of buildings demolished. Building activity indicators provide critical insights about the health of the broad economy, largely because the level of construction activity plays such a key role in how the overall economy performs. **U.S. Census New Residential Construction & Sales Indices:** The U.S. Census Bureau puts out a monthly report on new domestic construction spending activity, by dollar value, in the country. There are several indicators of building activity:
**New housing starts:** The number of new residential construction projects that begin during any particular month.

Building Activity Indicators

The capital goods sector refers to a grouping of publicly-traded companies that make machinery used to manufacture goods and products.

The capital goods sector (also referred to as the "industrials sector") is a category of stocks related to the manufacture or distribution of goods. The sector is diverse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering, and construction projects. The capital goods, or industrials sector, is a collection of companies that manufacture or distribute goods. Sales of inventory produced by machinery that comes from the capital goods sector companies can have a reverberating effect on businesses within this segment. Boeing, General Electric, Honeywell International, Union Pacific Corp., and Lockheed Martin are some of the largest companies in the capital goods sector.

Capital Goods Sector

Cost per available seat mile (CASM) is a measure of an airplane's cost to operate and ability to generate revenues.

Cost per available seat mile (CASM) is a common unit of measurement used to compare the efficiency of various airlines. For example, tallying the total number of flights does not differentiate between a 50-seat plane and a 500-seat plane, and counting the number of seats on each flight treats a 700-mile flight the same as a 5,000-mile flight. Cost per available seat mile, as the name suggests, reflects the costs incurred by an airline to fly a single-seat one mile. Cost per available seat mile (CASM) is usually a more comprehensive measurement of airline costs, but it's still important that investors are aware of what items comprise this measurement. CASM divides an airline's operating costs by ASM to get the cost to fly a single seat by one mile.

Cost Per Available Seat Mile (CASM)

Clinical trials are studies of the safety and efficacy of promising new drugs or other treatments in preparation for an application to introduce them.

Clinical trials are scientific studies of the safety and efficacy of a new medical drug or other treatment, conducted on human volunteers. Phase 2 is the second phase of clinical trials or studies for an experimental new drug, in which the focus of the drug is on its effectiveness. Phase 3 trials are used to obtain additional information about the new drug’s effectiveness and safety to assess the benefit versus risk of the therapy and to use this information in the drug’s labeling, if it is approved by the FDA. The main objective of Phase 2 trials is to obtain data on whether the drug actually works in treating a disease or indication, which is generally achieved through controlled trials that are closely monitored, while safety and side-effects also continue to be studied. Clinical trials are scientific studies of the safety and efficacy of a new medical drug or other treatment, conducted on human volunteers.

Clinical Trials

Comparable store sales is a retail store's revenue in the most recent accounting period relative to the revenue from a similar period in the past.

Comparable store sales refers to the revenue generated by a retail location in the most recent accounting period relative to the revenue it generated in a similar period in the past. 5.  Like #3 above, revenue related to stores opened during the past two years should be subtracted from 2018 revenue to arrive at the total comparable store sales for 2018.
6.  Subtract total comparable store sales in 2017 from total comparable store sales in 2018. A negative comparative store sales number shows a company's sales are declining, while a positive number shows sales are increasing. In effect, comparable store sales is a measure of sales growth and revenue from a company’s store operations. A negative number shows declining same-store sales, while a positive number shows increasing same-store sales.

Comparable Store Sales

The Conglomerates Sector refers to the market sector inhabited by large corporations comprised of diverse holdings.

The Global Industry Classification Standard (GICS)

The conglomerates sector refers to the group of stocks in the market that consist of large corporations holding a variety of diverse and sometimes unrelated subsidiary companies. Additionally, the size of a conglomerate can also hurt its stock performance, and is subject to a conglomerate discount, which results in a conglomerate being valued at less than than the sum of its holdings.
The Global Industry Classification Standard established a system of classifying industries, identifying 11 top-tier sectors, which are subcategorized into 24 industry groups, 69 industries, and 158 sub-industries.﻿﻿ The 11 top-tier GICS sectors are:
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Information Technology
Communication Services
Real Estate
Conglomerates focusing on a single industry will tend to be placed within a single category in this structure, while conglomerates with more widespread holdings will see their holdings allocated to the appropriate sector. Although conglomerates and the companies that comprise them may participate in one or more of the Global Industry Classification Standard (GICS) market sectors, some analyses find it useful to segment conglomerates into their own sector to interpret performance in order to develop their investment strategies. In some cases, conglomerates spread their holdings across a wide range of businesses that have little to no relationship to each other, but many conglomerates focus on companies serving a single industry, such as energy, food products, or aerospace.

Conglomerates Sector

Consolidation phase is a stage in the industry life cycle where companies start to come together, reducing the number of individual companies.

The consolidation phase is a stage in the industry life cycle where competitors in the industry start to merge with one another. During the growth phase, the new product or service has caught on and companies involved in creating or delivering the product or service are experiencing large amounts of organic growth as demand for their product increases. Say the video game industry is starting to mature, and as a result, individual gaming companies begin to acquire other video game makers and join together to form larger entities; this would be an example of a consolidation phase for the industry. In late maturity, companies may begin to consolidate as organic growth slows and they look for ways to increase their market share and juice their growth. Consolidations and mergers are usually sought after as a form of inorganic growth when the organic growth phase of industry formation has passed.

Consolidation Phase

Construction spending tallies the amount of money spent toward new construction in a given month.

MONTHLY CONSTRUCTION SPENDING, OCTOBER 2020

THE BIDEN PLAN TO BUILD A MODERN, SUSTAINABLE INFRASTRUCTURE AND AN EQUITABLE CLEAN ENERGY FUTURE.

How the Fed Has Responded to the COVID-19 Pandemic

Construction spending is an economic indicator that measures the amount of spending toward new construction. The proposed investments in construction spending include:
The creation of smart roads, which use sensors and control devices to improve safety
Investment in existing rail and trains to help cut down on pollution and commute times
New construction rail lines in cities to create additional connected communities and improve bus lines
Automobile infrastructure that supports electric vehicle charging stations
Investments in upgrading four million buildings and weatherizing two million homes in the next four years
Direct cash rebates and low-cost financing to upgrade electricity for residential homes to reduce energy bills
New construction spending to create 1.5 million homes and housing units that are sustainable, meaning they use less energy and materials
Of course, any infrastructure spending programs will need to be approved and passed by the U.S. Congress. The following data is included in the construction spending figures:
Cost of labor and materials
Cost of architectural and engineering work
Overhead costs, which are management, sales, and marketing costs or those expenses not tied directly to the production or construction of a project
Interest on loans or debt used to finance construction spending and taxes paid during the project
Contractor’s profits Construction spending is a key economic indicator and residential construction, which includes the housing market, represents nearly 50% of total construction spending in the U.S. The U.S. Department of Commerce's Census Bureau releases the monthly Value of Construction Put in Place Survey (VIP), which looks at residential and non-residential construction in the private sector, as well as state and federal construction spending.

Construction Spending

Consumer discretionary is an economic sector comprising non-essential products that individuals may only purchase when they have excess cash.

The Consumer Discretionary Select Sector SPDR® Fund

The Consumer Staples Select Sector SPDR® Fund

Consumer discretionary is a term for classifying goods and services that are considered non-essential by consumers, but desirable if their available income is sufficient to purchase them. The Bureau of Economic Analysis (BEA) releases a monthly report on personal income and outlays, which is also combined with the Federal Reserve’s (Fed) closely followed Personal Consumption Expenditures Index for measuring inflation.﻿﻿ ﻿﻿ In growth phases, personal income and personal spending will typically show increases, leading to more spending on consumer discretionary products. Other monthly indicators closely followed to predict consumer discretionary trends may include the following:
Retail sales
Non-farm payrolls
Unemployment levels
Labor market hours
Labor market earnings
Manufacturing activity
Services activity
Building construction activity
When an economy is growing, nearly all sectors will see stock value increases. On the other hand, when an economy is in contractionary phases, consumers usually earn less and focus their spending more on consumer staples, also referred to as consumer defensive. 1:19
The purchase of consumer discretionary products is often discussed in comparison with its counterpart: consumer staples.

Consumer Discretionary

The consumer goods sector is a category of stocks and companies that relate to items purchased by individuals and households for their own use.

The consumer goods sector is a category of stocks and companies that relate to items purchased by individuals and households rather than by manufacturers and industries. The consumer goods sector consists of companies that manufacture and sell products for consumer use. Some nondurable goods can be considered fast-moving consumer goods, which are packaged goods with high sales volume, rapid inventory turnover, and often short shelf lives, such as foods. Consumer goods can be broadly categorized as durable or nondurable, and the overall consumer goods sector can be broken down across many different industries. Many consumer goods sector companies are faced with a range of close competitors, substitute goods, and potential rivals.

Consumer Goods Sector

Consumer cyclicals are stocks of companies making consumer products that are greatly influenced by the ebbs and flows of the business cycle.

Consumer cyclicals are a category of stocks that rely heavily on the business cycle and economic conditions. Consumer cyclical companies, also referred to as consumer discretionary companies, are particularly exposed to fluctuations in consumer spending. The consumer discretionary sector is considered more volatile than the consumer staples sector, which is less sensitive to economic changes, but it offers greater potential for growth. Consumer cyclicals include companies that produce durable and non-durable consumer goods that are affected by changes in the business cycle. Most cyclical stocks belong to companies that sell discretionary items consumers can afford to buy more of during a booming economy, but where consumers spend less during a recession.

Consumer Cyclicals

Consumer staples are an industry sector encompassing products most people need to live, regardless of the state of the economy or their financial situation.

One can invest in consumer staples by purchasing the stocks of the individual consumer staples companies—industry leaders include Procter & Gamble (P&G), B&G Foods (BGS), Kimberly-Clark (KMB), and Phillip Morris (PM)—or by purchasing mutual funds or exchange-traded funds (ETFs) that specialize in the sector. Within the S&P 500 Index, consumer staples are broken down into six industries:
Food and staples retailing
Food products
Household products
Personal products
Tobacco Pros
Steady dividends, earnings
Little volatility
Save haven in recessionary times
Slow growth
Limited highs
Underperformers when interest rates rise
Consumer staples stocks can be a good option for investors seeking steady growth, solid dividends, and low volatility. They tend to bring in consistent earnings that support their dividend yields unlike the boom and bust cycles of riskier high-growth stocks, though more growth is available for consumer staples as they expand globally.

Consumer Staples

Council of Petroleum Accountants Societies is a nonprofit organization that provides guidance and education on accounting issues in the oil and gas sector.

The Council of Petroleum Accountants Societies (COPAS) is a non-profit professional organization that provides guidance and education on accounting issues in the oil and gas industry. Aside from issuing publications that keep accountants in the industry abreast of current accounting practices, COPAS organizes monthly luncheons, workshops, and webinars, as well as annual four-day education events for new industry accountants. The Council of Petroleum Accountants Societies (COPAS) is a non-profit professional organization that provides guidance and education on accounting issues in the oil and gas industry. COPAS discussions have created numerous standardized guidelines, procedures and best practices for efficient and effective accounting in the oil and gas industry. Other publications address issues such as joint interest accounting, auditing, production volume, revenue accounting, financial reporting, and tax considerations.

Council Of Petroleum Accountants Societies (COPAS)

Consumer packaged goods are products consumed every day by the typical consumer, such as food items, beverages, cigarettes, makeup, and household products.

CPG Industry Contributes $2 Trillion to U.S. GDP

Consumer packaged goods (CPG) are items used daily by average consumers that require routine replacement or replenishment, such as food, beverages, clothes, tobacco, makeup, and household products. 1:21
Despite experiencing a slow-down in growth over recent years, the CPG industry is still one of the largest sectors in North America, valued at approximately $2 trillion, led by well-established companies like Coca-Cola, Procter & Gamble, and L'Oréal.﻿﻿ Although CPG makers generally enjoy healthy margins and robust balance sheets, they must continuously fight for shelf space in stores, and they must ceaselessly invest in advertising, in an ongoing effort to increase brand recognition and stimulate sales. Consumer packaged goods (CPG) are items used daily by average consumers that require routine replacement or replenishment, such as food, beverages, clothes, tobacco, makeup, and household products. Consumer packaged goods (CPG) are items used daily by average consumers that require routine replacement or replenishment, such as food, beverages, clothes, tobacco, makeup, and household products. Despite experiencing a slow-down in growth over recent years, the CPG industry is still one of the largest sectors in North America, valued at approximately $2 trillion, led by well-established companies like Coca-Cola, Procter & Gamble, and L'Oréal.

Consumer Packaged Goods (CPG)

Cross-sectional analysis compares one company against the industry in which it operates.

Cross-sectional analysis is a type of analysis where an investor, analyst or portfolio manager compares a particular company to its industry peers. Cross-sectional analysis may focus on a single company for head-to-head analysis with its biggest competitors or it may approach it from an industry-wide lens to identify companies with a particular strength. Cross-sectional analysis is a type of analysis where an investor, analyst or portfolio manager compares a particular company to its industry peers. In practice, investors will usually use a combination of time series analysis and cross-sectional analysis before making a decision. Although cross-sectional analysis is seen as the opposite of time series analysis, the two are used together in practice.

Cross-Sectional Analysis

A cyclical industry is sensitive to the business cycle, meaning revenues are higher in periods of economic prosperity, and lower in periods of downturn.

Table of Contents
What Is a Cyclical Industry?
Understanding Cyclical Industry
The Business Cycle
Examples of Cyclical Industries
 Consumer discretionary goods, a sector focused on products and services that people buy with discretionary income, also is highly sensitive to the business cycle, because discretionary expenses are easier to cut from a consumer's budget during hard times rather than essential costs. A cyclical industry is a type of industry that is sensitive to the business cycle, such that revenues generally are higher in periods of economic prosperity and expansion and are lower in periods of economic downturn and contraction. By contrast, industries such as utilities tend to weather economic storms much better, because no matter how bad times are, most people find a way to pay their light bill. Companies in cyclical industries can deal with this type of volatility by implementing employee layoffs and cuts to compensate during bad times and paying bonuses and hiring en masse in good times.

Cyclical Industry

The Dow Jones Utility Average (DJUA) is a price-weighted average of 15 utility stocks traded in the U.S. Read how the DJUA acts as a market indicator.

American Electric Power 2020 Annual Report

Table of Contents
What Is the DJUA? The Dow Jones Utility Average (DJUA) currently includes major utility companies such as Consolidated Edison, Inc., Duke Energy Corporation, FirstEnergy Corp, American Water Works Company, Inc., and NextEra Energy, Inc.
The 2020 total market cap for the DJUA.
Other investing platforms that specifically focus on utilities include the Vanguard Utilities Index Fund and the Utilities Select Sector SPDR Fund.
The DJUA and the Dow Jones Transportation Average are assigned their own separate categories in the national investment tracking landscape. The Dow Jones Utility Average (DJUA) is one of the Dow Jones index groups that tracks the performance of a small group of prominent utility companies. The Dow Jones Utility Average (DJUA) is a Dow Jones index group that tracks the performance of several well-established utility companies. The Dow Jones Utility Average (DJUA) is a price-weighted index that tracks the performance of the top 15 U.S. utility companies.

Dow Jones Utility Average (DJUA)

A duopoly is a situation where two companies own all or nearly all of the market for a given product or service; it is the most basic form of an oligopoly.

Justice Department Sues Apple, Publishers Over e-Book Prices.

ECB Chief Says Instant Payments Could Break Visa/Mastercard Duopoly.

Table of Contents
What Is a Duopoly?
Understanding a Duopoly
Duopoly vs. Duopsony The two main types of duopoly: the Cournot duopoly and Bertrand duopoly. A duopoly is the most basic form of oligopoly, a market dominated by a small number of companies. A duopoly is the most basic form of oligopoly, a market dominated by a small number of companies. A duopoly exists when two companies dominate a market for a given product or service.

Duopoly

An emerging industry is a group of companies in a line of business formed around a new product or idea that is in the early stages of development.

An emerging industry is a group of companies in a line of business formed around a new product or idea that is in the early stages of development. Also, marketing expenses will be high because the product or service is largely unknown and unproven, so companies in an emerging industry must convince both investors and consumers that the product or service will be valuable. An emerging industry is a group of companies in a line of business formed around a new product or idea that is in the early stages of development. An emerging industry refers to companies that are formed around a new product or idea that is in the early stages of development. However, those companies that offered valuable consumer services and products—such as Amazon and eBay—survived and flourished, becoming standard-bearers for the emerging Internet industry.

Emerging Industry

The energy sector is a category of stocks that relate to producing or supplying energy, i.e., oil and gas drilling and refining or power utility companies.

Table 10. Major U.S. Coal Producers, 2019

SPDR S&P Oil & Gas Exploration & Production ETF

The energy sector is a category of stocks that relate to producing or supplying energy. The energy sector has been an important driver of industrial growth over the past century, providing fuel to power the rest of the economy.
Companies in the energy industry are classified based on how the energy is sourced such as non-renewables or fossil fuels and renewables such as solar.
​The energy sector is a large and all-encompassing term that describes a complex and inter-related network of companies, directly and indirectly, involved in the production and distribution of energy needed to power the economy and facilitate the means of production and transportation.
The companies within the energy sector are involved in various types of energy. For the most part, energy companies are often categorized based on how the energy that they produce is sourced and will typically fall into one-of-two categories:
Petroleum products and oil
Natural gas
Diesel fuel
Heating oil
Biofuels such as ethanol
Solar power Some companies specialize in refining oil and gas into specialty chemicals, although many larger oil producers such as Exxon Mobil are integrated energy producers, meaning they produce multiple types of energy and control the entire process. The energy sector or industry includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, and refining.

Energy Sector

Factory orders are economic indicators of the dollar value for durable and non-durable goods.

Monthly Full Report on Manufacturers’ Shipments, Inventories and Orders January 2021

Manufacturers’ Shipments, Inventories, & Orders

Monthly Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders January 2021

Manufacturers Place Orders When Economy Improves

Factory orders are economic indicators of the dollar value for goods from factories. The factory orders report includes four sections:
New orders, which indicate whether orders are growing or slowing
Unfilled orders, which indicate a backlog in production
Shipments, which indicate current sales
Inventories, which indicate the strength of current and future production When factory orders increase, it usually means the economy is expanding as consumers demand more goods and services, which in turn requires retailers and suppliers to order more supplies from factories.
An increase in factory orders doesn't always mean good news as such a change can also be a sign of inflation. Factory order data is often mundane, mostly because the report of durable goods orders comes out a couple of weeks earlier and includes orders for capital goods, a proxy for equipment investment. However, the factory orders report reveals more detailed information than the durable goods orders report.

Factory Orders: Overview

Fast fashion are clothing designs that quickly move from idea to prototype to mass production to consumers. Learn how fast fashion retailers make money. 

Fast Fashion Global Market Report 2020-30: COVID-19 Growth and Change

What Do Gen Z Shoppers Want? A Cute, Cheap Outfit That Looks Great on Instagram

How Fast Fashion Is Destroying the Planet

Fast Fashion: Changes in the Fashion Industry

Table of Contents
What Is Fast Fashion?
Understanding Fast Fashion
Fast Fashion Leaders
Pros and Cons of Fast Fashion
Fast Fashion FAQs
The Bottom Line
Fast fashion is the term used to describe clothing designs that move quickly from the catwalk to stores to take advantage of trends. In contrast to these four seasons, fast-fashion labels produce about 52 “micro-seasons” a year—or one new “collection” a week of clothes meant to be worn immediately, instead of months later.
Fast fashion is a boon for business. H&M's annual net sales in 2019 came to SEK 233 billion (about $24.8 billion).
The traditional clothing-industry model operates seasonally, with the fall fashion week displaying styles for the upcoming spring/summer, and the spring fashion week showcasing looks for the next fall/winter; in addition, there are often pre-fall and pre-spring or resort collections too. Fast fashion has also been criticized on intellectual property grounds, with some designers alleging that their designs have been illegally duplicated and mass-produced by the fast fashion companies.

Fast Fashion

Fast-moving consumer goods are cheaper products that sell quickly such as milk, gum, fruit and vegetables, soda, beer, and common drugs like aspirin.

Top 50 FMCG companies worldwide in 2018, based on net sales (in million U.S. dollars)

Fast-moving consumer goods are products that sell quickly at relatively low cost. FMCGs can be divided into several different categories including:
**Processed foods**: Cheese products, cereals, and boxed pasta
**Prepared meals**: Ready-to-eat meals
**Beverages**: Bottled water, energy drinks, and juices
**Baked goods**: Cookies, croissants, and bagels
**Fresh, frozen foods, and dry goods**: Fruits, vegetables, frozen peas and carrots, and raisins and nuts
**Medicines**: Aspirin, pain relievers, and other medication that can be purchased without a prescription
**Cleaning products**: Baking soda, oven cleaner, and window and glass cleaner
**Cosmetics and toiletries**: Hair care products, concealers, toothpaste, and soap
**Office supplies**: Pens, pencils, and markers
Because fast-moving consumer goods have such a high turnover rate, the market is not only very large, it is also very competitive. Also referred to as consumer packaged goods, fast-moving consumer goods are items with high turnover rates, low prices, or short shelf-lives. As mentioned above, fast-moving consumer goods are nondurable goods, or goods that have a short lifespan, and are consumed at a rapid or fast pace. The three main categories of consumer goods include durable goods, nondurable goods, and services.

Fast-Moving Consumer Goods (FMCG)

FIRE economy refers to the sector composed of finance, insurance, and real estate. 

The Biggest Industries In The United States

1992: Census of Financial, Insurance, and Real Estate Industries

FIRE refers to a sector of the economy composed of finance, insurance, and real estate - hence the acronym, "FIRE". The economic census classified as part of the FIRE economy depository institutions; non-depository credit institutions; insurance carriers, agents, and brokers; real estate businesses; holding and investment offices; and security and commodity brokers, dealers, exchanges, and services. The ripple effect that the FIRE economy’s decline had on the rest of the economy illustrated how important the finance, real estate, and insurance sector has become. Businesses that make up the FIRE economy include banks and credit unions, credit card companies, insurance agencies, mortgage brokers, investment brokerages, real estate agencies, hedge funds, and more. When the FIRE economy suffers, the rest of the economy can experience debt defaults, failed businesses, increasing unemployment, reduced demand, and debt deflation.

FIRE Economy

Funds available for distribution is an internal, non-GAAP measure of the amount of capital that is on hand for REITS to pay to investors. 

Investor Bulletin: Real Estate Investment Trusts (REITs)

BXP Quarterly Investor Overview - Q4 2020

Funds available for distribution (FAD) is an internal measure of the amount of capital that a real estate investment trust (REIT) possesses to pay out to common shareholders and unitholders. A REIT holds a portfolio of income-producing properties and/or mortgages and is required to distribute nearly all its taxable net income to maintain REIT status.﻿﻿ While there is no standardized method for calculating funds available for distribution, many REITs calculate FAD in a similar way by adjusting the funds from operations value for straight-line rents, non-cash items, and any recurring real estate-related expenses. Boston Properties calculates FAD by adding to FFO lease transaction costs that qualify as rent inducements, non-real estate depreciation, non-cash losses (or subtracting gains) from early extinguishment of debt, and stock-based compensation expense; eliminating the effects of straight-line rent and straight-line ground rent expense adjustment; and subtracting maintenance capital expenditures, hotel improvements, and equipment upgrades and replacements. Nevertheless, many REITs calculate FAD by adjusting the funds from operations value for straight-line rents, non-cash items, and any recurring real estate-related expenses. This list of adjustment items is not exhaustive, but it shows how cash and non-cash items are handled to present a more accurate figure of actual funds available for distribution to investors.

Funds Available For Distribution (FAD)

Green chip stocks are shares of companies that primarily engage in business that is beneficial to the environment.

Green chip stocks are shares of environmentally-friendly companies. The term green chip stocks, or green chips, is derived from blue chips, which refers to stocks that are considered to be industry leaders and consistently profitable. These companies may take part in the following:
Alternative energy, renewable energy, and green power
Recycling and waste reduction
Water and aquaculture
Pollution control
Green transportation
Organic agriculture For instance, alternative energy stocks were among the best performers in the latter part of the global bull market between 2003 and 2007, as the search for other energy sources assumed greater importance in an economic situation of triple-digit prices in crude oil. Green chip stocks are likely to be concentrated in areas such as alternative energy, pollution control, carbon abatement, and recycling.

Green Chip Stocks

A growth industry is the sector of the economy experiencing a higher-than-average growth rate.

A growth industry is that sector of an economy which experiences a higher-than-average growth rate as compared to other sectors. The CAGR is the mean annual growth rate of an investment over a set period of time longer than one year and can apply to companies in both growth and regular industries. An example of a growth industry is the technology sector, whose products have become runaway hits with consumers and led to multibillion-dollar valuations for tech companies in the stock market. A growth industry is that sector of an economy which experiences a higher-than-average growth rate as compared to other sectors. The analyst then raises the result to the power of one, divided by the period length, and subtracts one from the subsequent result:
CAGR \= ( Ending Value Beginning Value ) ( 1 \#   of years ) − 1 \\text{CAGR}=\\left(\\frac{\\text{Ending Value}}{\\text{Beginning Value}}\\right)^{\\left(\\frac{1}{\\#\\ \\text{of years}}\\right)}-1 CAGR\=(Beginning ValueEnding Value​)(# of years1​)−1
CAGR is widely used to calculate the average growth of an investment.

Growth Industry

The healthcare sector consists of companies that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare to patients.

Medicaid Managed Care: 2020 Results for the “Big Five”

The healthcare sector consists of businesses that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare to patients. Examples include Laboratory Corp. of America Holdings, which operates facilities that perform blood tests and other analyses, and HCA Healthcare Inc., which operates hospitals and other healthcare facilities in the U.S. and U.K.
According to the OECD, some of the highest-quality care in the world can be found in the U.S., but in terms of some measures of health the U.S. lags other wealthy, developed countries. The healthcare sector consists of businesses that provide medical services, manufacture medical equipment or drugs, provide medical insurance, or otherwise facilitate the provision of healthcare to patients. The U.S. healthcare sector benefits from a strong system of medical research and development, in cooperation with the higher education system and the technology industry. Life expectancy is 78.9 years, according to the OECD, below the OECD average of 80 (the OECD's 38 members are mostly rich, industrialized countries in Europe and North America).
Life expectancy at birth
Despite these subpar results, the U.S. spends far more than any other country on healthcare, measured per head of population: $10,948.

Healthcare Sector

Heavy industry refers to a type of business that usually carries a high capital cost, high barriers to entry, and low transportability.

Heavy industry relates to a type of business that typically carries a high capital cost (capital-intensive), high barriers to entry, and low transportability. When the chemical industry and electrical industry developed, they involved elements of both heavy industry and light industry, which was soon also true for the automotive industry and the aircraft industry. Heavy industry typically involves large and heavy products or large and heavy equipment and facilities (such as heavy equipment, large machine tools, and huge buildings); or complex or numerous processes. Large systems are often characteristic of heavy industry, such as the construction of skyscrapers and large dams during the post-World War II era, and the manufacture/deployment of large rockets and giant wind turbines through the 21st century.
Another trait of heavy industry is that it most often sells its goods to other industrial customers, rather than to the end consumer. Heavy industry is also often more heavily cyclical in investment and employment.
Products that result from heavy industry tend to be large in size and low in terms of transportability.

Heavy Industry

Hollowing out occurs when the middle class or middle-class jobs disappear as inequality increases wealth concentration among the very rich.

Hollowing-Out of the Japanese Manufacturing Industry and Regional Employment Development

'Hollowing Out' in U.S. Manufacturing: Analysis and Issues for Congress

Percent of Employment in Manufacturing in Japan (DISCONTINUED)

Employment by Economic Activity: Manufacturing: All Persons for Japan

Grasping the Performance: Facilitating Replicable Performance Measures via Benchmarking and Standardized Methodologies

America's Shrinking Middle Class: A Close Look at Changes Within Metropolitan Areas

Hollowing out is the deterioration of a country’s manufacturing sector when producers opt for low-cost facilities overseas. The report expands the organization's research into the fortunes of the country's middle class, which Pew in December found had declined to less than 50 percent of households, a major change in America's economic fabric.
While the middle class is indeed hollowing out, the dynamic is complex: Some families drop into the lower-income bracket, but many others climbed up from the middle class and into the upper-income bracket. Hollowing out refers to the weakening of a nation's or region's middle class, along with its middle-class manufacturing jobs, as socioeconomic stratification intensifies. Economists have blamed this phenomenon on several concurrent factors, including outsourcing jobs, labor-saving technologies, and demographic changes.
Over the past few decades, the manufacturing sectors of some of the world’s leading economies have contracted significantly due to hollowing out., sending those jobs to regions with lower labor costs such as China or Bangladesh. As of May 2016, the middle class contracted in nine out of 10 U.S. metropolitan areas since 2000, as income inequality widened after the recession, according to a new study from the Pew Research Center.

Hollowing Out

Industrial espionage is the illegal and unethical theft of business trade secrets for use by a competitor to achieve a competitive advantage.

The term industrial espionage refers to the illegal and unethical theft of business trade secrets for use by a competitor to achieve a competitive advantage. Also referred to as corporate spying or espionage or economic espionage, industrial espionage is most commonly associated with technology-heavy industries—particularly the computer, biotechnology, aerospace, chemical, energy, and auto sectors—in which a significant amount of money is spent on research and development (R&D). Industrial espionage describes a series of covert activities in the corporate world such as the theft of trade secrets by the removal, copying, or recording of confidential or valuable information in a company. The term industrial espionage refers to the illegal and unethical theft of business trade secrets for use by a competitor to achieve a competitive advantage. Industrial espionage is the illegal and unethical theft of business trade secrets for use by a competitor to achieve a competitive advantage.

Industrial Espionage

The industrial goods sector encompasses stocks that relate to producing goods used in construction and manufacturing.

Table of Contents
Industrial Goods Sector Definition
How It Works
How to Track It
Large Industrial Goods Companies
Ways to Invest The industrial goods sector includes companies involved with aerospace and defense, industrial machinery, tools, lumber production, construction, waste management, manufactured housing, and cement and metal fabrication. The industrial goods sector includes stocks of companies that mainly produce capital goods used in manufacturing, resource extraction, and construction. The U.S. Census Bureau publishes monthly data on new orders of capital goods, broken down into various subsectors, which can provide powerful insights into long- and short-term trends in the industrial goods sector. However, with this sector covering a wide range of subsectors, there is usually at least one area of growth in the industrial goods sector.

Industrial Goods Sector

An industry group is a classification method for companies based on common lines of business.

The Global Industry Classification Standard

S&P Dow Jones Indices and MCSI Announce Revisions to the Global Industry Classification Standard Structure in 2018

Global Industry Classification Standard Methodology

An industry group is a classification method that groups together individual companies or stocks based on common lines of business. The Global Industry Classification Standard (GICS), a joint effort by MSCI Inc. and S&P Dow Jones Indices, is regarded as the definitive categorization system for industry groups in the United States.﻿﻿ Investors track the performance of stocks across different groups because the fate of one company is often tied to broader trends within the industry. The GICS categorization system includes 11 sectors, 24 industry groups, 69 industries, and 158 sub-industries, indicating that a market sector is typically broader than an industry group. Market sectors are typically broader than industry groups, but some industry groups such as energy and utilities are also market sectors. Understanding how the various industry groups exist within market sectors can help investors compartmentalize the overall market and make sense of market activity from one day to the next.

Industry Group

The industry life cycle traces the evolution of a given industry based on the business characteristics commonly displayed in each phase.

The industry life cycle refers to the evolution of an industry or business through four stages based on the business characteristics commonly displayed in each phase. The industry life cycle ends with the decline phase, a period when the industry or business is unable to sustain growth. The industry life cycle refers to the evolution of an industry or business based on its stages of growth and decline. The industry life cycle refers to the evolution of an industry or business through four stages based on the business characteristics commonly displayed in each phase. The four phases of an industry life cycle are the introduction, growth, maturity, and decline stages.

Industry Life Cycle

Industry life cycle analysis is part of fundamental analysis of a company involving examination of the stage an industry is in at a given point in time. 

Industry life cycle analysis is part of fundamental analysis of a company involving the examination of the stage an industry is in at a given point in time. Moreover, an industry life cycle may lead or lag an economic cycle, and can vary from an economic cycle's phases in terms of expansion or contraction percentages or duration of peak and trough stages. An analyst will determine where a company sits in the cycle and use this information to project future financial performance and estimate forward valuations (e.g., forward price-earnings ratios).
Industry life cycle refers to the stages of growth, consolidation, and eventual extinction of an industry. A company's future growth prospects may be bright (or dim) depending on the stage that it is in during an industry life cycle. Though not necessarily the case, the life cycle of a particular industry will follow the general economic cycle.

Industry Life Cycle Analysis

The industrial production index (IPI) is a monthly economic indicator measuring real output in the manufacturing, mining, electric, and gas industries.

The industrial production index (IPI) is a monthly economic indicator measuring real output in the manufacturing, mining, electric, and gas industries, relative to a base year. The industrial production index (IPI) measures levels of production and capacity in the manufacturing, mining, electric, and gas industries, relative to a base year. The industrial production index (IPI) measures levels of production in the manufacturing, mining—including oil and gas field drilling services—and electrical and gas utilities sectors. The industrial production index (IPI) is a monthly economic indicator measuring real output in the manufacturing, mining, electric, and gas industries, relative to a base year. Industry-level data are useful for managers and investors within specific lines of business, while the composite index is an important macroeconomic indicator for economists and investors—fluctuations within the industrial sector account for most of the variation in overall economic growth.

Industrial Production Index (IPI)

Land Rehabilitation attempts to restore an area of land back to its natural state after it has been damaged or degraded.

Lone Mountain Coal Slurry Spill, Virginia

Land rehabilitation is a process of restoration to bring an area of land back to its natural state after it has been damaged or degraded, making it safe for wildlife and flora as well as humans. A $33 million project administered by the Environmental Protection Agency was launched in 2010 to remove and cap heavily contaminated sediment along a stretch of the river, and to restore the river shoreline with native grasses, flowers, trees, and shrubs, improving water quality and providing habitat for wildlife and migratory birds.
An international major land restoration project, the **Kubuqi Ecological Restoration Project,** was designed to combat desertification in China’s Kubuqi desert, south of the Gobi Desert. Through federal and state-level partnerships, the Virginia Natural Area Preserve System has acquired parcels of land in the affected area, and has implemented permanent land preservation, enhancements of the riparian buffer, and streambank stabilization within the Powell River watershed are critically important to sustain water quality and ensure the success of the restored aquatic ecosystem. Measures of success for land rehabilitation efforts vary widely, ranging from oil spill cleanup efforts and wildlife habitat restoration to shoreline and restoration in coastal regions. Land rehabilitation is differentiated from land reclamation, which refers to altering existing ecosystems to make way for cultivation or construction, often by creating new land from river beds, lake beds, and oceans.

Land Rehabilitation

Main Street is a colloquial term used to refer to individual investors, their employees, and the overall economy.

Main Street is a colloquial term used by economists to refer collectively to America's independent small businesses. Main Street may also be used to describe a small, independent investment company as opposed to one of the globally recognized Wall Street investment firms. In another context, the term Main Street is used in contrast to Wall Street, with the latter referring to big business and high finance. The polar opposite of Main Street is Wall Street and the big financial firms and global corporations it represents. For example, regulations designed to protect Main Street investors are seen as hampering Wall Street's ability to innovate and profit.

Main Street Defiition

Manufacturing cells use lean environments by grouping together related equipment and personnel.

Manufacturing cells are sets of machines that are grouped by the products or parts that they produce. Lastly, manufacturing cells help eliminate the waste associated with overprocessing by keeping processes in close proximity to each other and making only what can be used immediately. Manufacturing cells are generally used to increase the efficiency of the flow of materials and to eliminate waste in the manufacturing process. A critical step in implementing a cellular manufacturing system is to develop manufacturing cells. This type of system is used in the cellular manufacturing concept and is distinct from the traditional functional manufacturing system, which groups all similar machines together.

Manufacturing Cells

Manufacturing production refers to methods used to manufacture and produce goods for sale. Read how efficient manufacturing production increases profits.

Manufacturing production refers to the methodology of how to most efficiently manufacture and produce goods for sale, beyond just a bill of materials. One limitation of make-to-order (MTO) products is that the production costs tend to be higher than make-to-stock (MTS) products because of the amount of customization required to fulfill the customer's order. The make-to-assemble (MTA) strategy is a hybrid of MTS and MTO in that companies stock basic parts based on demand predictions, but do not assemble them until customers place their order. Whether it is one or the other, manufacturers need to match their production methods to the needs and desires of the market, the available resources, order volume and size, seasonal shifts in demand, overhead costs (such as labor and inventory), and numerous other variables. A company that uses the make-to-assemble (MTA) strategy stocks the basic parts needed for production but does not begin to assemble them until a customer places an order.

Manufacturing Production

Manufacturing is the processing of raw materials into finished goods using tools and processes.

Manufacturing is the processing of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. The Industrial Revolution of the 19th century brought with it the advent of mass production, assembly line manufacturing, and the use of mechanization to manufacture larger quantities of goods at a lower cost. Manufacturing is the process of turning raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Manufacturing is the processing of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Mass production and assembly line manufacturing allowed companies to create parts that could be used interchangeably and allowed finished products to be made more readily by reducing the need for part customization.

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