Defensive stocks usually have a stock price that is greatly affected by the state of the economy.

Question

Quizplus · Accepted Answer

Defensive stocks are typically companies that offer products or services that are in demand regardless of the state of the economy, such as utilities or consumer staples. These stocks are considered defensive because they may be less affected by economic downturns or recessions. Therefore, their stock price is usually not greatly affected by the state of the economy.

Defensive Stocks Usually Have a Stock Price That Is Greatly