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Trading Terms

Defensive Stock

Defensive Stock refers to a collection of investment coupons that provide a consistent and reliable stream of income through dividends, regardless of the fluctuations in the market. This type of stock is considered to be a safer option for investors, as it offers stability and a steady return. It is often preferred by risk-averse investors who prioritize a steady income over the potential for higher returns. In times of economic uncertainty, Defensive Stock can provide a sense of security and protection for investors' portfolios.
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