- An example of a correction is changing the answer of 2 + 2 from 5 to 4.
- An example of a correction is sending someone to jail for stealing.
- a correcting or being corrected
- a change that corrects a mistake; change from wrong to right, or from abnormal to normal; emendation; rectification
- the amount of change made in correcting
- punishment or scolding to correct faults
- [usually pl.] punishment and rehabilitation within a prison system
- Finance a sudden, usually short-term decline, as in the stock market, following a rapid or dramatic rise in prices
Origin of correctionMiddle English correccion from Old French correction from Classical Latin correctio
- The act or process of correcting.
- Something offered or substituted for a mistake or fault: made corrections in the report.
- a. Punishment intended to rehabilitate or improve.b. often corrections The treatment of offenders through a system of penal incarceration, rehabilitation, parole, and probation, or the administrative system by which these are effectuated.
- An amount or quantity added or subtracted in order to correct.
- A temporary decline in stock-market activity or prices following a period of increases.
From Old French correccion (French correction), from Latin corrēctiō.
correction - Investment & Finance Definition
The movement of a stock or market to lower levels (often 10 percent or more) after the market or stock has been at unrealistically high levels. Gains from the too-high period are erased. Although a market may correct, it doesn’t necessarily mean that the long-term upward trend is broken. While the term is usually applied to falling markets, it is possible to have an upward correction that breaks a downward trend. In technical analysis, a correction is a short-term movement, either up or down, that is contrary to the dominant price trend.
However, correction often is used in a more generic sense to refer to a market that has fallen, regardless of the principles of technical analysis.