A market correction and a market crash both involve declines in the market, but they differ significantly in scale and impact: Market Correction: Definition: A market correction is typically a decline of 10% to 20% from a recent peak in stock prices. Corrections can occur due to a variety of factors, including changes in economic conditions, shifts in investor sentiment, or external events. They are a natural part of market cycles and can help to bring overvalued assets back to …

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