what is defensive company? | Forex Trading and Money Exchange

what is defensive company?
Posted 18 July, 2009 by Cayden Shelton from Russia
my name is Cayden Shelton. I'm new at trading, and there is something i didn't apprehend: what does defensive company mean?
FX Sage Answers:
that's an important term to fathom, Cayden. Defensive company is A company whose sales and earnings remain relatively stable during both economic upturns and downturns. 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.
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