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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A sharp, relatively short price decline that temporarily interrupts a persistent upward trend in the market or in the price of a stock.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
* Arkansas: The Arkansas Democrat-Gazette credited "Alert Reader" for pointing out errors leading to two of its 29 August corrections. Those were the only two all online readers could see; the other 27--listed under a "Getting It Straight" headline--could be viewed only by paid subscribers to the online site.
The current project investigated which of the two error correction procedures described above (Word Supply or Discrimination error corrections) was most effective at teaching a student with autism to read stories correctly.
The true (or corrected) viscosity is simply calculated from the true shear stress (from the Bagley correction) and the true shear rate (from the Rabinowitsch correction), as shown in equation 9.
Thus, in many cases, this change should facilitate a more timely correction and better ensure the benefits of plan participants and beneficiaries.
While the consequences of her feedback choices support past research that recasting results in less self correction by students than explicit forms of correction (Lyster and Ranta, 1997), this is true for salient recasts in FMF and MF forum, somewhat true for direct repetition and yes-recasts and likely untrue for interrogative recasts in FMF SCMC.
Corporation 2 can make corrective contributions on behalf of the excluded employees during the 2001 plan year, crediting each corrective contribution with earnings at a rate appropriate for the plan from the date the corrective contribution should have been made to the date of correction.
However, the procedure of the extraction of this matrix element involves calculations of radiative corrections for Fermi transition in nuclei.
Readers have started sending in corrections from small local newspapers, and some copy editors even send in corrections -- but usually not their own.
But the second correction violated a Times policy that "corrections will not assign blame." This violation prompted a memo from Jamie Gold, the paper's readers' representative, reminding the staff of the policy.
(17.) Seattle Police Department and Department of Corrections Neighborhood Correction Initiative Draft Policy, August 2000.
Should the facility inactivate the old assessment sent already and do a "Significant Correction Assessment"?

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