defensive stock
Definition
Shares of stock issued by companies that belong to a market sector that are less vulnerable to economic downturns due to their non-cyclical nature. Companies in the food, utilities, healthcare and non-durable goods (soap, toothpaste) industries tend to perform more evenly through good and bad economic times, so their stock prices are more stable than others. Owning defensive stocks in a portfolio can reduce its overall volatility.
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