What is Market correction?
A market correction is a drop of at least 10%, but less than 20%, from a recent high.
Corrections are fairly common and are a normal part of investing. A fall of 20% or more is called a bear market.
Why it matters to you
Knowing corrections are routine can help you avoid panic selling.
FAQ
What is Market correction?
A market correction is a drop of at least 10%, but less than 20%, from a recent high.
Is a correction the same as a crash?
No. A crash is a sudden, very steep fall over days; a correction is a 10% to 20% decline over any period.
All plain-English definitions → · Educational only, not investment advice.
