What do you understand by defensive stock

[frederick_9]

A defensive stock is one that consistently pays dividends and generates steady earnings notwithstanding the situation of the general stock market.
Defensive stocks typically exhibit greater stability throughout the various stages of the business cycle since there is a steady demand for their products.

 

[Joseph555]

You hardly lose your resources in those kind of stocks but the gain that comes with it annually is very low compared to when you go into Capital appreciation stocks in the stock market. This is encouraging for new businessmen

 

[Bigron]

I read about this on a news report that it is a kind of stovk that doesn't go down much and also doesn't give much interest or dividends when investing in it.

Can someone enlighting me more about this type of stock and is it advisable to have a share of the stock.

Once you invest in defensive stocks, you make regular profits. The net income in this type of stock is independent to the actual stock prices and it's not influenced by the market condition.

 

[eenya00]

then i believe this is the kind of stock you need to buy if you are a novice or have very large capital to yourself, as this sort of stock is a bit less risky and you can make passive money from it as well.

 

[Planbizzle]

I read about this on a news report that it is a kind of stovk that doesn't go down much and also doesn't give much interest or dividends when investing in it.

Can someone enlighting me more about this type of stock and is it advisable to have a share of the stock.

Stocks that are considered defensive are those that are less vulnerable to market turbulence or economic decline. When the economy is unstable, investors frequently go for defensive stocks because they provide a reasonably safe investment.