Putting companies into 'market sectors', like indices, helps comparative analysis. Whereas indices tend to be based on the size of companies (although not exclusively so), sectors group them according to the industry they are in.
Some sector headings that you'll recognise are:
When newspapers list company share prices, they also put the companies under the relevant sector, which makes it easier for you to quickly look up a company. The Financial Times, the Times and the Daily Telegraph all use the sector classifications of the FT-A index, so whichever paper you look in, the companies will be in the same place.
Sectors have two main uses:
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