A(n)________ stock's price is greatly affected by the state of the economy because the company makes a product that can have highly variable demand.

Question

Quizplus · Accepted Answer

Cyclical stocks belong to companies that are highly sensitive to the state of the economy. The demand for their products or services can fluctuate greatly depending on whether the economy is expanding or contracting. Therefore, the stock price of these companies can be greatly affected by economic conditions.

A(n)________ Stock's Price Is Greatly Affected by the State of the Economy