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?

Athe securities of a company that airplanes to the military

Ba stock of a large company

Cthe common stock of a utility company

Da corporate bond

Show Suggested Answer

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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Janine

4 days 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

9 days 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

14 days 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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