Market Basics
Correction
A market decline that is meaningful but smaller than a typical bear market.
Also called: market correction, pullback
What it means
A correction usually refers to a drop in price from a recent high that is serious enough to get attention but not necessarily part of a long, deep downturn. The exact percentage used can vary by context, but the term usually describes a notable pullback.
Why it matters
It helps users understand that not every decline means a full market crisis.