(redirected from self-corrects) Also found in: Dictionary.
Describing a situation where a trend is likely to reverse itself and restore the status quo. For example, if a security drops in price by $5, a self-correcting trend would provide some indication that it will soon rise (roughly) $5 to its previous price. See also: Reversion to the Mean.
Of, relating to, or being a security price movement that is excessive and likely to be at least partially retraced.
As for punitive damages and "runaway" juries, what the general public doesn't realize is that the judicial system self-corrects: Many large punitive damages awards are reduced either by the trial judge or on appeal.