correction

Definition

A reversal of the prevailing trend in price movement for a security. The term is most often used to describe a decline after a period of rising prices. A correction is often considered beneficial for the long term health of the market, in that the prices had risen too quickly and the drop put them back to more realistic levels.

Use correction in a sentence

The methodical poet erased the line of text she had written in order to make a correction to her syntax.

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If there is a problem with your project you will need to hold a meeting to come up with a quick correction to it.

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Given the historic length of the current bull market many investors are establishing protective puts in the event of a market correction.

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