________ stocks are issued by companies that produce goods or services that are affected by economic trends.

Question

Quizplus · Accepted Answer

Cyclical stocks are directly tied to the ups and downs of the economy. These companies' revenue and profits tend to rise and fall depending on economic trends. For example, companies in the automotive or construction industries are considered cyclical. When the economy is doing well, people are more likely to buy cars or build homes, so these companies make more money. Conversely, when the economy is struggling, people tighten their budgets and cut back on big-ticket purchases, so these companies see reduced profits.

________ Stocks Are Issued by Companies That Produce Goods or Services