Are you considering investing in defence stocks? Here’s everything you need to know before you dip your toe in the defence industry.
What are defence stocks?
Defence stocks are companies involved in the production and sale of aircraft, ships, spacecraft, weapon systems, and equipment for military purposes. An adjacent sector is the aerospace industry, which conducts many of the same activities but for civilian purposes.
Defence stocks fall under the umbrella of the industrial sector, comprised of companies involved in manufacturing, resource extraction, and construction. Thus, defence companies that manufacture and sell equipment/crafts are covered by this sector.
The defence industry primarily operates under long-term, exclusive contracts with government and military entities, both domestically and globally. Defence companies produce weaponry, but may also offer information technology (IT), cybersecurity, intelligence, data…
