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What is the technical term for a 10 percent decline from a recent high in the u.S. Stock market?

User Luksfarris
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4 votes

Answer:

correction

Step-by-step explanation:

In financial terms, a correction (or market correction) happens when a security loses at least 10% of its price considering its most recent peak. The prices of stocks, bonds, etc., change every day, that is why a correction may take days, weeks or even months before the price of the security starts to recover. It is normal that corrections happen, and if a person has made a long term investment, he/she shouldn't worry about them because the price will eventually recover completely and surpass that peak in the future. Corrections are dangerous for those who speculate with short term investments.

User Unn
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