Defensive Company

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Dictionary Says

Definition of 'Defensive Company'

A company whose sales and earnings remain relatively stable during both economic upturns and downturns.
Investopedia Says

Investopedia explains 'Defensive Company'

Companies within the utilities industry, such as water and electricity companies, are defensive companies since their goods and services have inelastic demand.

The stock of defensive companies is often classified as defensive stock.

Related Definitions

  • Defensive Stock

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  • Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which individuals (consumers/producers) change their demand/amount ...
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  • Utility

    1. An economic term referring to the total satisfaction received from consuming a good or service. 2. A company that generates, transmits and/or distributes electricity, water and/or gas ...
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