When you fix a mistake, you make a correction, a change that rights a wrong. When you correct a misspelled word, you’ve made a correction. Well done! Correction also applies to punishment, which is another way to right a wrong.
A correction is an improvement or a revision when there's something that needs to be fixed. Newspapers issue corrections for previously printed errors, and a poorly written law might get the correction it needs after voters choose to amend it. Sometimes correction is also used to mean "punishment or discipline," and a correction or correctional facility is another word for jail. Correction can also mean "a drop in the value of a stock that was artificially high."