Question

A(n) ________ stock will likely suffer the least amount of depreciation in a major recession

Answer 1

The answer is: Defensive

Defensive stock refers to the type of stock that would remain stables regardless of economic condition that occurs in the country.

Defensive stocks usually include stocks from companies that sold daily necessities as their main products (such as food, drinks, or medicinal product). Even in recession, people's consumption for these daily necessities tend to not decreasing)

Answer 2

Answer : A Defensive stock

Companies that produce goods that are in constant demand are known as defensive companies and their shares are known as defensive stocks.

Since defensive companies deliver stable earnings and dividends even in a recession, the stocks of such companies will most likely suffer the least amount of depreciation in a major recession.