Market correction

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Market correction

A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values.

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.
References in periodicals archive ?
STOCK MARKET CORRECTIONS often throw up the best opportunities for reform.
The recent regional market corrections triggered by the European debt crisis served as a reality check and confirmed that regional economies are not immune to developments in the world markets.
The new president Edward Carey said that, in the last 38 years, Irish new home prices have increased in all but one year, prior to recent market corrections, with cumulative growth of 4,800 per cent.
Market corrections are made in a free market through the millions of decisions made by consumers every day.
Given recent market corrections, Blunt was wondering if he should bail out.
October brings thoughts of fall foliage, pumpkins, trick-or-treat, Columbus Day, Oktoberfest, stock market corrections .
In this challenging economic environment, investors will become more aware of risks; any disappointing economic news, or political events, may lead to temporary market corrections.
12 /PRNewswire/ -- Rumors over credit to the Commonwealth of Independent States and market corrections were the reasons most cited as spurring a recent record volume trading day in Hard Red Spring Wheat futures.
Although the major stock market indexes have traded in a volatile sideways pattern since February of this year, with two market corrections and subsequent rallies, stocks have recently begun to show strength, albeit on moderate volume.
Clearly, there have been market crashes (1929), market breaks (1987) and market corrections (1989) when the prices of all securities plummeted precipitously.
We have done remarkably well in the past five years, considering it was a difficult period for investment firms due to one of the worst stock market corrections in years," said McAdams.