cyclical stock

cyclical stock definition - finance
A stock whose value moves upward when the economy rises and declines when the economy slows. Com-panies in the fields of automobile manufacturing, travel, lodging, entertainment, and large equipment manufacturing, for example, are cyclical stocks. Non-cyclical stocks, in contrast, are those in companies whose business remains fairly static regardless of the economy. Food, consumer products, and drug companies, for example, are non-cyclical stocks.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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