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Finra Series-7 Exam - Topic 2 Question 123 Discussion

Which of the following is an analyst most likely to classify as a defensive issue?
C) the common stock of a utility company
A) the securities of a company that airplanes to the military
B) a stock of a large company
D) a corporate bond

Finra Series-7 Exam - Topic 2 Question 123 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 123
Topic #: 2
[All Series-7 Questions]

Which of the following is an analyst most likely to classify as a defensive issue?

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Suggested Answer: C

the common stock of a utility company. The term ''defensive issue'' refers to a security that is least susceptible to swings in the business cycle.


by Elfrieda at Apr 03, 2026, 04:02 AM

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Ngoc
I think C is the best choice. Utility companies are stable.
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Floyd
5 days ago
Wait, are we really calling utility stocks defensive? Seems odd!
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Lili
10 days ago
I agree with C, utilities are usually stable.
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Sage
15 days ago
D) a corporate bond? Not really a stock, though.
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Staci
2 months ago
I think B) a stock of a large company could also be considered defensive.
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Marquetta
2 months ago
C) the common stock of a utility company is definitely defensive.
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Mari
3 months ago
I’m a bit confused; I thought corporate bonds could also be considered defensive. But now that I think about it, C seems like the safest bet.
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Janine
3 months ago
I practiced a similar question, and I think defensive issues are typically related to essential services. So, I would go with C as well.
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Paola
3 months ago
I'm not entirely sure, but I remember something about defensive stocks being less sensitive to economic cycles. Could it be option B, the large company stock?
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Precious
3 months ago
I think a defensive issue is something that provides stable returns, so I'm leaning towards option C, the utility company stock.
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