IBM & General Electric

Definition

IBM (International Business Machines Corporation) is an American multinational technology company, while General Electric (GE) is an American multinational conglomerate involved in various sectors like aviation, power, renewable energy, and healthcare.

Analogy

Think of IBM and GE as the Swiss Army knives of the business world. Just as a Swiss Army knife has multiple tools for different tasks, these companies have multiple divisions handling different products and services.

Related terms

Conglomerate: A corporation made up of several different companies that operate in diversified fields.

Technology Sector: The category of stocks relating to producing or distributing technological goods and services.

Diversification: A risk management strategy that mixes a wide variety of investments within a portfolio.