*Market: Correction, Pullback, Crash or Fraud?*
To explain this to you, here’s a simple example: You are a potato trader in your town. Every day the price of potatoes is normal, and business is good. One day a big rumor arises: "There will be a French Fry Festival, where people will be awarded prizes for the best fry preparation!"
Hearing this, everyone rushes to buy potatoes. The price goes up because demand is higher, and the supply of potatoes decreases.
*Market Correction*
Some greedy traders create an artificial shortage to raise the price of potatoes. Their price increases by 60%. But when the government conducts an investigation, it turns out that the supply of potatoes is sufficient. The panic among people subsides, and the price drops by 10%. This is a market correction.
*Market Pullback*
Now traders from neighboring towns start bringing potatoes and selling them. The supply of potatoes increases, and the price falls again, this time by 25%. This is a market pullback.
*Market Crash*
Then the government decides to import potatoes from China at a low price. People panic and stop buying potatoes. The price drops by 50%. This is a market crash.