What does the word “industrials” mean? Most people have a very narrow definition of what industrial means and what it relates to. For most people, it means a business that creates or assembles products, especially in the service industry such as building and construction or packaging and distribution. However, for those who are slightly more interested in business, the definition includes any activity involving commerce or business. This includes all branches of the economic activity and can be found in the broadest sense to include manufacturing, trading, selling, marketing, and service industries. The word “commerce” itself contains several different definitions; however, it most commonly refers to the commercial activity of moving and receiving goods and information by means of commerce.
So, when people hear the term “industrials”, what comes to their mind? In most cases, the idea of a company comes to mind: a company which makes, manufactures, or processes a particular product. If this definition confuses you, here is another way to define it: let us say that you just purchased a new bottle of soda from the store. Industries are the activities involved in the making or producing of the product; and these can be divided into several different sectors, such as: construction, building material, and fabricated metal and production.
As you can see, there is a huge variety of businesses involved in the manufacturing, processing, marketing, and distribution of materials stocks, which are also categorized into several different industries. Within each of these industries, there are many different sectors and sub-sectors, which provide a variety of activities. Some industries can be considered to be simple industrial stocks: a factory, for example, can be classified as an industrial stock regardless of how many products it creates. However, many other industries can be classified as industrial stocks, depending on the type of activity that takes place within the plant and which types of materials are manufactured.