Market correction

Market correction is a process whereby stockbrokers try to correct the value of over priced stocks. The stock market responds to both fundamental news and rumours. These two factors can drive the price of stocks to an over-priced level or an under-priced state. When market is grossly overvalued, there will be problem especially for those who borrowed money to buy shares. Overvalued stocks are stocks that have reached their peak for a period; they either enter into a resting phase or in most cases begin to decline.