Correction
Also called: market correction
A noticeable fall in prices, by convention around 10% from a recent peak, that is smaller than a bear market.
Corrections are common, including during long bull markets. The 10% figure is a convention used by commentators, not an official threshold.
Nobody can reliably tell in advance whether a correction will reverse or deepen into a bear market.
Learn more in these lessons
- Bull markets, bear markets, corrections and crashesWhat are bull and bear markets, and how bad can a fall get?
Related terms
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