A cyclical stock is one that

Question

Quizplus · Accepted Answer

Cyclical stocks are those that tend to be closely tied to the business cycle, performing well during periods of economic expansion and struggling during periods of contraction. They often operate in the capital goods industries, such as manufacturing, construction, and transportation, and their performance can be influenced by factors like consumer spending and interest rates. Therefore, option D, "might operate in the capital goods industries," is the best choice.

A Cyclical Stock Is One That