Correction


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Correction

Reverse movement, usually downward, in the price of an individual stock, bond, commodity, or index. If prices have been rising on the market as a whole, and then fall dramatically, this is known as a correction within an upward trend. Antithesis of a technical rally. See: Dip, break.

Market Correction

A drop in the price of a security when that security has been overbought and therefore overpriced. Market corrections are usually short-term and are necessary for the stability of the security.

correction

A sharp, relatively short price decline that temporarily interrupts a persistent upward trend in the market or in the price of a stock.

Correction.

A correction is a drop -- usually a sudden and substantial one of 10% or more -- in the price of an individual stock, bond, commodity, index, or the market as a whole.

Market analysts anticipate market corrections when security prices are high in relation to company earnings and other indicators of economic health.

When a market correction is greater than 10% and the prices do not begin to recover relatively promptly, some analysts point to the correction as the beginning of a bear market.

References in classic literature ?
All he said was said in his throat and nose, for it is thus the Flamands speak, but I heard him to the end of his paragraph without proffering a word of correction, whereat he looked vastly self-complacent, convinced, no doubt, that he had acquitted himself like a real born and bred "Anglais.
Horsemen, and subsequently teamsters, however, availed themselves of an opening, at the end of the building, to shorten their passage westward, until in time the regular highway was laid out along this course, and houses were gradually built on either side, so as effectually to prevent any subsequent correction of the evil.
The reader made a pencilled correction on the margin of the list, and resumed:
You mentioned the historian's personal correction of traditions respecting his own epoch.
The next thought was a correction to that; it lighted up the situation.
Surely then he might have regarded that abhorrence of the un-intact state, which he had inherited with the creed of mysticism, as at least open to correction when the result was due to treachery.
Weeks had listened politely, with smiling modesty, till Hayward finished; then he asked one or two insidious questions, so innocent in appearance that Hayward, not seeing into what a quandary they led him, answered blandly; Weeks made a courteous objection, then a correction of fact, after that a quotation from some little known Latin commentator, then a reference to a German authority; and the fact was disclosed that he was a scholar.
Easily, and without correction by reason, her imagination made pictures, superb backgrounds casting a rich though phantom light upon the facts in the foreground.
These things," he added, looking at Lydgate, "would be to me such relaxation as tow-picking is to prisoners in a house of correction.
Saintsbury rightly points out, in correction of an imperfectly informed French critic of our literature) the radical distinction between poetry and prose has ever been recognized by its students, yet the imaginative impulse, which is perhaps the richest of our purely intellectual gifts, has been apt to invade the province of that tact and good judgment, alike as to matter and manner, in which we are not richer than other people.
It was honorable attention on the part of Gentleman Jones to correct me when I was in error; it was honorable common sense in me to profit by the correction.
The prudent housekeeper was again dispatched to bring the unhappy culprit before Mr Allworthy, in order, not as it was hoped by some, and expected by all, to be sent to the house of correction, but to receive wholesome admonition and reproof; which those who relish that kind of instructive writing may peruse in the next chapter.