Stocks whose prices tend to increase when the economy is in an expansionary stage and decline during a contractionary stage are called:

Question

Business

Diego Reyes

2 November, 20:57

Stocks whose prices tend to increase when the economy is in an expansionary stage and decline during a contractionary stage are called:

+2

Answers (1)

Know the Answer?

Wiley · Answer 1

These are cyclical stocks. These tend to be sold by companies that are typically in the business of items or services that are more discretionary in purpose: the customers will spend more on them when the economy is doing well and cut back on the product or service's usage when the economy begins to sour.