Standard Industrial Classification (SIC) Code - Explained
What is an SIC Code?
Written by Jason Gordon
Updated at April 15th, 2022
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
Table of Contents
What is a Standard Industrial Classification Code? How is the SIC Code Used? Academic Research on Standard Industrial ClassificationWhat is a Standard Industrial Classification Code?
The Standard Industrial Classifications (SIC) refer to a set of symbols or codes that are used in the United States to classify industry areas and business activities companies engage in. SIC codes are tools that help the U.S government identify the nature of business a company does and areas of specialization of an industry.
The U.S government created the SIC codes in 1937 to have an effective analysis and evaluation of businesses, government agencies and industries. By 1997, the SIC codes were replaced by the North American Industry Classification System (NAICS) which serves as a new system of six-digit codes. That were adopted by Canada, United States and Mexico.
Back To: BUSINESS LAW
How is the SIC Code Used?
The major purpose of the SIC codes was the identification of business activities that a company engage in. These codes were also helpful in the analysis of economic activity of a company or business. SIC codes also improved economic communication between companies and industries and the states that adopted the codes.
SIC codes enable the government to access a listing of company activities which are accessed through the Electronic data gathering, analysis and retrieval system (EDGAR). The Securities and Exchange Commission (SEC) an agency owned by the United States still uses SIC codes. The codes aid the easy identification of the industry to which a company belongs and its business activities.
Back to: Business Transactions