Stock in an industry that tends to be volatile and sensitive to changes in economic conditions, such as the mining, forestry, housing, and automobile industries.

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cyclical stock

stock that tends to rise quickly when the economy turns up and to fall quickly when the economy turns down. Examples are housing, automobiles, and paper. Stocks of noncyclical industries -such as foods, insurance, drugs-are not as directly affected by economic changes.

A cyclical stock is one whose profits are highly correlated with the business cycle. When the economy is in expansion, a cyclical stock has increased profits. Conversely, when the economy slows, so do the prospects for a cyclical stock.

Stocks that are affected by changes in the economic cycle. such as those of property and consumer durable s companies. Cyclical stock s are generally viewed as riskier investments and carry a higher beta than non-cyclical stock s.

See also: Counter-cyclical Stock.

Cyclical Stock

A cyclical stock is one that tends to follow along with economic cycle s. As the economy turns up, these stocks will generally rise along with it. Examples of these include housing, paper and automobiles.

CYCLICAL STOCK — Cyclical stock s tend to rise in value during an upturn in the economy and fall during.

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Non Cyclical stock s can be best illustrated with utility companies. No matter how the economy is performing, most families would like to have heat and power in their homes. We need heat & power to cook food, wash our clothes, etc. These are basic necessities.

Cyclical Stock

Stock that is strongly affected by changes in economic activity. The stock’s price will rise when the economy turns up, and will fall when the economy turns down. Examples are automobiles and paper stocks.

cyclical stock. A stock whose price tends to rise when the economy is entering an upswing and fall as the economy begins to decline.

cyclical stock s: Also called cyclical s, stocks that generally move with the ups and downs of the overall economy.

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Cyclical Stock The stock of a company whose fortunes are closely tied to the cyclical ups and downs of the economy in general. For example, General Motors is a cyclical stock since its business of selling autos is highly dependent on the general health of the economy.

Cyclical stock s: Common stocks of companies whose prices vary directly with the business cycle .

Dated date. In a bond issue, the date on which interest begins to accrue.

Day order s: Orders that are canceled if they are not filled on the day they are entered.

Cyclical Stock s

Shares which move directly with the business cycle ; generally they advance as business conditions improve and decline when business slackens.

Cyclical stock

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CYCLICAL STOCK

Stocks that tend to rise or fall with changes in the economy. Examples of cyclical stock s would be stocks in the housing or automobile industries.

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Cyclical Stock Expand/Collapse

Stock in an industry that is particularly sensitive to swings in economic conditions, such as mining or forestry.

Cyclical stock Common stock of a firm whose profits are heavily influenced by cyclical changes in general economic activities. Return to top

Cyclical stock s

Stocks which rise and fall in price with the state of the economy, in such industries as construction, automobile, engineering or those affected by the international economy such as shipping, aviation, and tourism.

Cyclical Versus Non-Cyclical Stock s

The Greatest Market Crashes

The name given to Thursday, October 24, 1929, when the New York Stock Exchange plummeted, leading to the Great Depression of the 1930s.

Short name for the department that was called Her Majesty’s Customs and Excise until 2005, but has now merged with Inland Revenue to form HM. (Read more)

Cyclical stock s are those companies who earnings tend to ebb and flow with the fortunes of the economy, such as housebuilders.

This strategy can be profitable but requires careful timing and analysis of various factors. Find out what they are. The Ups And Downs Of Investing In Cyclical Stock s

Stocks can also be subdivided into defensive and cyclical stock s. The difference is in the way their profits, and therefore their stock prices, tend to respond to the relative strength or weakness of the economy as a whole.

Customs union An agreement by two or more countries to erect a common external tariff and to abolish restrictions on trade among members. Cyclical stock Used in the context of general equities. Stock that tends to rise quickly when the economy turns up and fall quickly when the economy turns down.