A market correction is defined as the drop in a company's market price after hitting a peak. In most cases, these tend to be short-lived and last for no longer than 3-4 months. Is it worth buying small caps during a market correction? Let’s find out.
A market correction is usually considered to have occurred when there is a fall of 10 per cent or more in the value of any security such as equity, stock, mutual funds, a currency market, an index, or any other asset. There is the possibility that stock exchanges, assets, or the entire capital market may fall for weeks, a couple of months, or even years. In most cases, market corrections tend to be short-lived and last for 3-4 months, as per a recent market analysis.
Stock market correction: Why does it occur?
The presence of market corrections is a healthy sign since an incessant rise in the stock market may have negative implications for the economy over the long term. The rise in share prices translates to an economic boom. A continuous increase in the prices of the benchmark indi...