Equity Investing
Defensive Stock
Definition
What is Defensive Stock?
A share in a business whose demand tends to remain comparatively stable during economic downturns.
Example in practice
How This Looks in Practice
Consumers still buy basic food and medicine during a recession, supporting defensive companies.
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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.