A ________ stock comes from a company that makes consumer goods such as food and drugs that have fairly constant demand regardless of the state of the economy.

Question

Quizplus · Accepted Answer

Defensive stocks are generally from companies that produce goods or services that are always in demand, regardless of economic conditions. Consumer goods like food and drugs have fairly constant demand, making them good examples of defensive stocks. Blue chip stocks are generally from large, well-established companies with a strong track record, while growth stocks are from companies with a high potential for growth. Cyclical stocks are from companies that are highly dependent on the state of the economy and tend to perform well in good economic conditions but poorly in bad ones.

A ________ Stock Comes from a Company That Makes Consumer