Skip to main content
correction

correction

23 6.3
A fall in stock prices after a period of rapid rises
  • noun
  • /kəˈrɛkʃən/
  • Literature
translation icon : corrección bursátil
  • The most recent Chinese policies have stressed economic growth, improved efficiency, and correction of economic imbalances.

Those lead to corrections, crashes and recessions.

Autoplay Next

Examples

  • Others say it's the same because it's a normal correction and recession.

    Blog text (11)
  • But when a correction needs to happen, sellers are typically slow to adjust.

  • Then I think that the time for correction is fast approaching.

    Blog text (12)
  • And this big drop may be just the beginning of a much deeper correction.

  • America obviously needs a currency correction to help reduce its trade deficit.

    Academic text (1999)
  • I still believe that we are a market correction away from massive layoffs.

  • External factors are also now in a correction phase after an exceptionally favorable period.

    Academic text (2004)
  • Can we be expecting any market corrections, perhaps?

  • As the economy moves through this "correction," innocent bystanders will lose their livelihoods and then their homes.

    Blog text (5)
  • After a prolonged period of growth, the stock market finally experienced a correction as prices began to decline.

Synonyms

retracement
vscorrection
  • Specialized
1 8.9

A short price move against the main trend in markets

is a longer decline seen as a natural adjustment after prior rises

Antonyms

bubble
  • Literature
121 7.1

A time when prices rise quickly and then fall suddenly

Compounds

A change to a plan to make it work better

1 9.8

A place where people were kept for minor crimes in the past

Bonferroni correction
  • Specialized
8.0

A way to reduce false positive results when running many statistical tests

error correction code
  • Specialized
4.3

A way of adding extra information to data so small errors can be found and fixed

How Severe

crash
89 5.2
slump
65 4.6
correction
  • Literature
23 6.3
to dip
47 2.5

Surface Forms

correction singular
corrections plural

Morphology

correction = correct (semi-transparent) = correct + ion

The financial sense (a market decline as an adjustment) is an extension of 'making right' but requires domain knowledge of market dynamics.

Etymology

Correction comes from the Latin corrigere, meaning 'to make right', and links to the root rect as in direct. In the market, a correction is a natural adjustment that brings prices back to a more 'correct' level.