defensive stock

defensive stock definition - business

defensive stock

A stock that is resistant to general stock market declines. Stocks of electric utilities, gold and silver producers, and some consumer goods companies are considered defensive. Although defensive stocks resist downturns, they generally move up more slowly than other stocks during bull markets.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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