Equity Investing
Cyclical Stock
Definition
What is Cyclical Stock?
A share whose business results tend to rise and fall with the economic cycle.
Example in practice
How This Looks in Practice
Car manufacturers and construction companies often perform better during economic expansions.
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Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.