A stock that remains stable during declines in the economy is called a(n) ____________ stock.
A) defensive
B) cyclical
C) growth
D) income
E) blue-chip

Question

Quizplus · Accepted Answer

Defensive stocks are stocks that remain stable during declines in the economy. These include companies in sectors like healthcare, consumer staples, and utilities, which tend to provide products and services that people continue to use even during difficult economic times. Cyclical stocks, on the other hand, tend to follow the ups and downs of the overall economy more closely, while growth stocks are typically associated with companies that are expected to experience above-average growth in earnings or revenue. Income stocks may offer high dividend yields, while blue-chip stocks are well-established companies with strong track records of growth and stability.

A Stock That Remains Stable During Declines in the Economy