Learn / Glossary / Market correction
GlossaryWhat is Market correction?
A correction is a sudden drop of about 10 percent from a recent high.
The simple explanation
Corrections are fairly common and often happen when prices have risen quickly. They are smaller than a bear market and are sometimes seen as a reset after a big run.
An example
The S&P 500 falls 10 percent over a few weeks and then stabilizes.
Why it matters
Corrections feel scary, but they are a normal part of how markets move.
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Educational information, not financial advice.