GRANGER STOCKS Meaning and
Definition
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Granger stocks refers to a group of publicly traded companies that demonstrate a positive correlation between their stock prices and the overall health of the economy. These companies typically belong to industries that are considered to be cyclical in nature, such as automotive, construction, consumer discretionary, and manufacturing sectors. Granger stocks are often associated with the Granger causality principle, which suggests that past movements in one variable (e.g., the economy) can be used to predict future movements in another variable (e.g., stock prices).
Investors and analysts pay close attention to Granger stocks as they are indicators of the economic cycle and can provide valuable information about the overall market direction. When the economy is expanding and consumer spending is strong, Granger stocks tend to perform well, experiencing growth and increased demand for their products or services. However, during economic downturns or recessions, these stocks may underperform as consumer demand decreases and companies may struggle with reduced profits.
It is important to note that the performance of Granger stocks can vary depending on other factors such as global market trends, technological advancements, and company-specific factors. It is also worth mentioning that not all companies within cyclically related industries are considered Granger stocks, as not all of them demonstrate a strong correlation with the broader economy.
Common Misspellings for GRANGER STOCKS
- franger stocks
- vranger stocks
- branger stocks
- hranger stocks
- yranger stocks
- tranger stocks
- geanger stocks
- gdanger stocks
- gfanger stocks
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- g5anger stocks
- g4anger stocks
- grznger stocks
- grsnger stocks
- grwnger stocks
- grqnger stocks
- grabger stocks
- gramger stocks
- grajger stocks
- grahger stocks
Etymology of GRANGER STOCKS
The term "Granger stocks" originates from the surname "Granger" and its association with the American farmer movement known as the Granger movement. The Granger movement emerged in the late 1860s/early 1870s as a response to the economic hardships faced by farmers in the United States. Farmers were experiencing excessive transport costs and high service charges from the railroads and grain elevators, which were controlled by private corporations.
To counter these practices and protect their interests, farmers formed organizations called Granges, which acted as cooperative societies. The Granges aimed to promote economic and political solidarity among farmers, providing them with collective bargaining power against the dominant forces controlling transportation and storage infrastructure.
As part of their efforts, the farmers' organizations began investing in the newly issued stocks of cooperative enterprises that were established to provide services such as transportation, warehousing, and marketing.
