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 ?
Summary: Abu DhabiEe's real estate market faced key challenges last year and with flight-to-quality and market corrections continuing this year as well, the market activity was likely to remain subdued during the first half of 2019, said property consultancy firm Cavendish Maxwell.
"Those market movements were clearly, in our view, necessary market corrections," she told an audience at Dubai's World Government Forum.
When you consider the markets have had a relatively strong, unprecedented rise the past couple of years, market corrections can serve as an opportunity to improve valuations so it's not quite as expensive to buy stocks.
Fed's Kaplan downplayed the recent stock market dive, arguing during a speech he made in Frankfurt, that market corrections are "healthy." He said that the declines came amid historically high market valuations, and that the losses don't have implications for the underlying economy.
"It's clear that investors need a better strategy to protect themselves from future market corrections and volatility, especially as they enter their peak earning years and prepare for and enter retirement."
It, however, cautioned investors against exhausting their funds or buying aggressively at lofty prices, citing opportunities to load up during market corrections.
Since the economic downturn in 2008, there have been six stock market corrections, the last of which was in late 2015 into early 2016 and was about a 13% loss.
STOCK MARKET CORRECTIONS often throw up the best opportunities for reform.
Despite the weak earnings, Bharti's billionaire founder and chairman Sunil Bharti Mittal said: "Market corrections have started...
This option assumes that future market corrections to keep supply in check will be much milder and shorter than the past coffee crises.
However, it is important to note that due to the declining prices and increasing foreclosures experienced since the beginning of the recession, some portion of any increase in building permit valuations may be due to either individuals or businesses taking advantages of market corrections in real estate prices and subsequently making improvements.
"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.