
Defensive Stock
A defensive stock refers to shares of companies that provide stable and consistent returns and dividends, regardless of market conditions. These stocks are typically associated with well-established companies that offer essential products or services, making them less vulnerable to economic downturns. Defensive stocks are rare, as few companies are immune to all market conditions. While they may not offer high returns, they are valued for providing stability and protecting investors during economic declines. In India, ITC Limited is an example of a defensive stock, known for its steady performance and resilience in various market conditions.
Related Terms
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company's financial...
Accumulation/Distribution Indicator (A/D)
The Accumulation/Distribution (A/D) Indicator is a technical analysis tool used to determine the trend of...
Liquidity
Liquidity refers to how easily an asset can be bought or sold in the market...
Equity Options
An equity option is a type of derivative contract that gives the holder the right,...
Gravestone Doji
A Gravestone Doji is a candlestick pattern that indicates a potential reversal from a bullish...
Cash Contract
A cash contract is an agreement between two parties where goods are delivered at a...