What type of stock tends to stay stable during declines in the economy.
A)Blue chip
B)Growth
C)Defensive
D)Large Cap
E)Small Cap

Question

Quizplus · Accepted Answer

Defensive stocks tend to perform well during economic declines as they are in industries that are necessary for everyday life such as utilities, healthcare, and consumer staples. These industries have steady demand regardless of economic conditions, making their stocks more stable. Blue chip and large cap stocks may also be stable during downturns, but they may also be impacted by market fluctuations since they are large, well-established companies with exposure to multiple industries. Growth and small cap stocks are generally more volatile and may not perform as well during economic downturns.

What Type of Stock Tends to Stay Stable During Declines