InvestorWords.com

A stock that tends to remain stable under difficult economic conditions. Defensive stocks include food, tobacco, oil, and utilities. These stocks hold up in hard times because demand does not decrease as dramatically as it may in other sectors. Defensive stocks tend to lag behind the rest of the market during economic expansion because demand does not increase as dramatically in an upswing.

• The Federal Reserve Board of Governors
• What are Stock Option Plans?
• Introduction to Commodities
• Considerations While Choosing a Bank
• A Safe Retirement - Custodians, Rollovers, and IRAs
• Understanding Asset Allocation While Building a Portfolio

Featured Advertiser