Market corrections, pullbacks, crashes, and scams—these terms are ones you’ve likely heard a lot, but what do they really mean?

Let's explain this with a simple potato story.

Imagine you’re selling potatoes in town. Usually, the price is stable, and business is good. One day, a rumor spreads: "There will be a French fries festival, and the winner of the best French fries will receive a grand prize!" Once the news breaks, everyone rushes to buy potatoes, demand skyrockets, and prices rise accordingly. This situation is a natural reaction when market demand increases.

Next, some merchants appear; they buy a large quantity of potatoes and deliberately create a shortage, driving up the prices. At this point, the price has increased by 60%. But soon, the government intervenes, investigates, and announces that the supply of potatoes in the market is sufficient. Panic subsides, and prices correct themselves, dropping by about 10%.

This phenomenon is what we call a "market adjustment." After the market overreacts, prices will correct and return to a more reasonable level.

However, new sellers enter the market. Hearing about the price increase, they all come to sell more potatoes. As supply in the market increases, prices drop again, and this time the decrease reaches 25%. This is what we refer to as a "market pullback," a temporary price decrease caused by new competition or increased supply.

But the story doesn’t end here. Suddenly, the government decides to import a large quantity of cheap potatoes. People begin to panic and stop buying local potatoes. As a result, prices plummet by 50%. This is a "market crash"—a sharp price drop triggered by unexpected news or significant events.

Finally, the truth is revealed: There is no such thing as a French fries festival; those merchants fabricated the lie just to inflate prices. Once the news spreads, the market collapses completely, and prices nearly hit zero. This is a classic "market scam;" when the market is manipulated and people lose trust, prices experience catastrophic declines.

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