What's the difference between a stock market correction, a crash, and a bear market?

These terms describe different magnitudes of decline. A 'correction' is a drop of 10% or more from a recent peak; these happen roughly once a year on average and are considered normal. A 'bear market' is a deeper, more sustained drop of 20% or more, which occurs less often and usually accompanies economic weakness or a shock.

A 'crash' isn't defined by a specific percentage but by speed, a sudden, sharp plunge over days or hours, like October 1987 or March 2020. A crash can trigger a bear market, but not every bear market involves a crash; some grind down slowly over months. Understanding the vocabulary helps you keep perspective: a 10% correction is routine and rarely worth acting on, while even a bear market is temporary in the context of a decades-long investing life. None of them are reasons to abandon a sound long-term plan.