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 ?
The bank said the market correction was exacerbated on the Dubai bourse in the wake of sell off at Arabtec, the largest listed construction company in the UAE amid speculations about the shareholding pattern of the company and the surprise exit of the CEO.
The two-day conference is designed to address those questions and to assist individuals who work in the housing market to better understand and prepare for the market correction.
The last major market correction was in 1974-1975, when a combination of recession, oil price inflation and political crisis sent the market reeling downward by 43%.
It was the fifth consecutive quarter when prices held steady or showed increases, demonstrating a resilient residential marketplace a year after the NASDAQ stock market correction.
In the bank's Investment Policy Statement for December, the analysts also said that a stock market correction will take place next year.
Because of the market correction, customers are not in such a rush to buy, but will, from merchants who look to differentiate themselves, either in quality or on cost.
His prediction of a looming massive market correction in 1987 came to fruition in 1987's stock market crash resulting in a big win.
A more significant market correction could scare consumers further, which could trigger a more severe slowdown than the "gentle landing" bei ng managed by the Federal Reserve.
Favorable interest rates and income trends should offset uncertainty due to the stock market correction,'' said economist Karen Dexter of Merrill Lynch.
The third quarter market stabilization is attributed to two influences, the historic summer lull and last spring's NASDAQ market correction.
Some of the pundits are saying not to worry, that this is just a market correction.
Sales leaders' positive outlooks reflect the overall economic picture: the Federal Reserve expects moderate economic growth in spite of speculation about consumer spending, the housing market and a possible stock market correction.