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Chan-Seung Lee
Joined: 03 Dec 2005
Posts: 1032
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 Posted: Tue Jan 31, 2006 9:25 pm Post subject: What does the word 'correction' mean? |
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| Blue chips suffered as traders continued to favor newer companies that promise faster profit growth. The correction is simply not over yet as we can see by the continuing pressure on stocks like GE, Coke and Merck. |
I know the meaning of 'correction' as 'making revision' but in the above context 'the correction' may have another meaning. Can you let me know it and paraphrase 'The correction is simply not over yet as we can see by the continuing pressure on stocks like GE, Coke and Merck'?
Thanks, always. |
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nostril5
Joined: 18 Oct 2004
Posts: 65
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| Posted: Tue Jan 31, 2006 9:54 pm Post subject: Correction |
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A correction in the stock market has a similar meaning to your meaning.
It means that a share price is too high (due to speculators) and then falls back to a more reasonable price compared to the value of the company. This 'fall' is the 'correction'.
So...
'The correction is simply not over yet as we can see by the continuing pressure on stocks like GE, Coke and Merck'?
means...
The fall in price will continue. We guess this because ther are other falls in stocks like GE, Coke and Merck.
I hope this helps.
Mike |
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