Correction

A correction refers to a short-to-medium term decline of 10% or more in the price of a security, asset, or financial market from its recent peak. Unlike a bear market, which signifies a prolonged and deeper downturn (typically 20% or more), a correction is generally considered a healthy and natural part of a larger uptrend. It often serves to reset overbought conditions, shed speculative froth, and re-establish a more sustainable growth trajectory by allowing profit-taking and re-evaluation.