Stocks whose prices are expected to remain stable, or even prosper, when economic activity is slowing down are known as
A) defensive stocks.
B) cyclical stocks.
C) reversible stocks.
D) speculative stocks.

Question

Quizplus · Accepted Answer

Defensive stocks are typically those of companies that produce essential goods or services that people continue to consume regardless of the state of the economy (such as healthcare, utilities, and consumer staples). They are considered "defensive" because they tend to hold up better during economic downturns and are less volatile than cyclical or speculative stocks.

Stocks Whose Prices Are Expected to Remain Stable, or Even