Posted in Finance, Accounting and Economics Terms, Total Reads: 450
Definition: Global Industry Classification Standard
Global Industry Classification Standard (GICS) is an institutionalized order framework for values grew mutually by Morgan Stanley Capital International (MSCI) and Standard and Poor's. The GICS system is utilized by the MSCI records, which incorporate local and global stocks, and in addition by a huge segment of the expert speculation administration group.
GICS is utilized as a premise for S&P and MSCI budgetary business sector files in which every organization is allocated to a sub-industry, and to a relating industry, industry bunch and area, as indicated by the meaning of its essential business movement.
"GICS" is an enrolled trademark of McGraw-Hill Financial and MSCI Inc
The GICS framework was built up in 1999 and has subsequent to wind up generally completed direct use by portfolio directors and benchmarking to MSCI records. On the whole, more than 26,000 stocks worldwide have been characterized by GICS, representing more than 95% of the world's recorded business sector capitalization. MSCI gauges that more than $3 trillion in resources is benchmarked to its MSCI reserves, a significant number of which are area particular.
The principle objective of GICS is to permit all business sector members to order stocks by institutionalized industry definitions. GICS is utilized to make portfolio expansion and general resource assignment choices from inside of a typical system. GICS contends with the Industry Classification Benchmark (ICB) framework, which is kept up by Dow Jones and London's FTSE Group. Practically speaking, a large portion of the same division and industry assignments exist in both measures.