What is bailout

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Definition: Bailout is a general term for extending financial support to a company or a country facing a potential bankruptcy threat. It can take the form of loans, cash, bonds, or stock purchases. A bailout may or may not require reimbursement and is often accompanied by greater government oversee and regulations. The reason for bailout is to support an industry that may be affecting millions of people internationally and could be on the verge of bankruptcy due to prolonged financial crises.

Description: Bailout policies come in various forms, the most common being direct loans or guarantees of third-party private loans to the rescued entity. These direct loans are often on terms favouring the entity being rescued. For example, We had to keep bailing out water from this leaky canoe.

Rescue someone in an emergency, especially a financial crisis of some kind, as in They were counting on an inheritance to bail them out. Jump out of an airplane, using a parachute. For example, When the second engine sputtered, the pilot decided to bail out. Give up on something, abandon a responsibility, as in The company was not doing well, so John decided to bail out while he could still find another job. Definition of bailout Entry 1 of 2. Definition of bail out Entry 2 of 2. Examples of bailout in a Sentence Noun government bailouts of large corporations Verb if the meeting seems like it will never end, find an excuse to bail out the government bailed out the savings and loan industry.

Tobias, cleveland , 28 Apr. First Known Use of bailout Noun , in the meaning defined above Verb , in the meaning defined at sense 1. Learn More About bailout. Time Traveler for bailout The first known use of bailout was in See more words from the same year.

From the Editors at Merriam-Webster. Top 10 Words of the '00s Top 10 Words of the '00s When 'google' became a verb.