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Simple English definitions for legal terms
cyclical
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A quick definition of cyclical:
Term: Cyclical
Definition: When we talk about something being cyclical, we mean that it goes up and down in a pattern. This can happen with things like the prices of stocks or how well a certain industry is doing. The reason for these ups and downs can be because of things like what the government is doing, how the economy is doing, or even just the time of year. So, when we say something is cyclical, we mean that it goes through regular cycles of going up and down.
A more thorough explanation:
Definition: Cyclical refers to stocks or industries that experience large price swings due to factors such as government policies, economic conditions, and seasonal changes.
Examples:
- The automobile industry is cyclical because car sales tend to increase during the summer months and decrease during the winter months.
- The housing market is cyclical because it is affected by interest rates, economic growth, and consumer confidence.
The examples illustrate the definition of cyclical because they show how external factors can cause fluctuations in the prices of stocks or industries. In the automobile industry, seasonal changes affect the demand for cars, which in turn affects the prices of car company stocks. In the housing market, economic conditions and consumer confidence can cause fluctuations in the prices of homes and real estate stocks.