correction

noun cor·rec·tion \ kə-ˈrek-shən \
Updated on: 19 Nov 2017

Definition of correction

1 : the action or an instance of correcting: such as
c : a bringing into conformity with a standard
d : neutralization, counteraction
  • correction of acidity
2 : a decline in market price or business activity following and counteracting a rise
3 a : something substituted in place of what is wrong
  • marking corrections on the students' papers
b : a quantity applied by way of correcting (as for adjustment of an instrument)
4 : the treatment and rehabilitation of offenders through a program involving penal custody, parole, and probation; also : the administration of such treatment as a matter of public policy usually used in plural

correctional

play \kə-ˈrek-shnəl, -shə-nᵊl\ adjective

Examples of correction in a Sentence

  1. The teacher marked corrections on his students' tests.

  2. Please make corrections before handing in your compositions.

  3. the correction of your mistakes

  4. people in need of vision correction

Recent Examples of correction from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'correction.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of correction

14th century


Financial Definition of CORRECTION

correction

What It Is

A correction refers to a price decline of at least 10% of any security or market index after a temporary increase in market prices.

How It Works

The stock market's value is always rising and falling. Sometimes, the market will experience short-term gains when nothing has really changed. These increases in value are usually caused by mass optimism on the part of investors anticipating gains. As more investors buy into the trend, the price increases. Once the price is high enough, buying slows, and some investors begin to sell to lock in their gains. This decrease in price, following a short-term increase, is called a correction.

For example, suppose there is a stock XYZ that is currently valued at $80. Anticipating gains, investors continue to purchase XYZ, and the price of the stock goes up to $100 over the next month. At the end of this month, some investors stop buying the stock at the higher price, and others start selling the stock to lock in their gains. Consequently, the market readjusts and the price of XYZ stock falls to $90 per share. Therefore, XYZ stock has experienced a correction of roughly 10%.

Why It Matters

Corrections are usually tracked once an upswing in market prices has come and gone. A correction in a stock's price following an upswing is indicative of a stock's true market value and may not indicate a loss in value so much as a market's return to stability.

Corrections are a big part of technical analysis. Many investors use indicators to try to determine when the correction will begin and end so that they can buy when prices are lower.



CORRECTION Defined for English Language Learners

correction

noun

Definition of correction for English Language Learners

  • : a change that makes something right, true, accurate, etc.

  • : the act of making something (such as an error or a bad condition) accurate or better : the act of correcting something

  • : the act or process of punishing and changing the behavior of people who have committed crimes ( US )


CORRECTION Defined for Kids

correction

noun cor·rec·tion \ kə-ˈrek-shən \

Definition of correction for Students

1 : the act of making something agree with what is right or standard
  • correction of vision
2 : a change that makes something right
  • I read the teacher's corrections on my paper.
3 : punishment 1

correctional

\-shə-nᵊl\ adjective

Medical Dictionary

correction

noun cor·rec·tion \ kə-ˈrek-shən \

medical Definition of correction

: the action or an instance of correcting or neutralizing a harmful or undesirable condition
  • correction of acidity
  • correction of visual defects with glasses

Law Dictionary

correction

noun cor·rec·tion

legal Definition of correction

1 : a decline in market price or business activity following and counteracting a rise
2 : the treatment and rehabilitation of offenders through a program involving penal custody, parole, and probation often used in pl.

correctional

adjective


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