Glossary

A type of an industry that is sensitive to the business cycle, such that  revenues are generally higher in periods of economic prosperity and  expansion, and lower in periods of economic downturn and  contraction.
Companies in cyclical industries can deal with this type of  volatility by implementing cuts to compensations and layoffs during bad  times, and paying bonuses and hiring en masse in good times. Cyclical  industries include those that produce durable goods such as raw materials and  heavy equipment.
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