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

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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.

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