bailout

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noun bail·out \ ˈbā-ˌlau̇t \

Updated on: 26 Jul 2017

Definition of bailout

:a rescue from financial distress

See bailout defined for English-language learners

Examples of bailout in a Sentence

government bailouts of large corporations

Recent Examples of bailout from the Web

The state treasurer is threatening to withhold bailout loans.

— john baer, Philly.com, "Pa. pols hold food fight over Mike Stack's snacks," 23 Aug. 2017
Cost-sharing payments, rather than being a bailout, were included in the Affordable Care Act’s blueprint as a way to make insurance more affordable.

— jay hancock, Kaiser Health News, "Despite Insurers’ Tactical Win On ACA’s Cost-Sharing Payments, Uncertainty Lingers," 2 Aug. 2017
The local bailout commitment is in addition to state subsidies for the deal that would amount to nearly 50 times the previous record paid by Wisconsin taxpayers to secure a manufacturing plant in the state.

— patrick marley, Milwaukee Journal Sentinel, "Foxconn bill contains another big potential obligation for Wisconsin taxpayers," 1 Aug. 2017
Education opportunity should be the price Illinois governor Bruce Rauner demands in return for Chicago getting its pension bailout.

— jeanne allen, National Review, "A New Blue-State Experiment with School Reform," 28 July 2017
Conservatives generally oppose the subsidies, calling them a bailout of the insurance industry and arguing that the Obama administration didn’t have the authority to pay them.

— chad terhune, Kaiser Health News, "Obamacare Exchanges In Limbo," 19 July 2017
But post-EU bailout, the country has become newly revitalized.

— kevin nguyen, GQ, "Is Portugal the New Iceland?," 10 July 2017
On November 8, 2016, the firm’s prospects of securing a bailout massively improved.

— eric levitz, Daily Intelligencer, "Kushner Sought $500 Million Bailout From Top Qatari Investor: Report," 10 July 2017
Worldpay was spun out of Royal Bank of Scotland in 2010, as part of the EU's conditions for approving the U.K.'s 43 billion pound bailout of RBS during the financial crisis.

— geoffrey smith, Fortune, "Freed by the Fed, JPMorgan Is Back in the Acquisition Business," 5 July 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bailout.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of bailout

1939

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite

bail out

verb

Definition of bail out

intransitive verb

1 :to parachute from an aircraft

2 :to abandon a harmful or difficult situation; also :leave, depart

See bail out defined for kids

Examples of bail out in a Sentence

if the meeting seems like it will never end, find an excuse to bail out
the government bailed out the savings and loan industry

First Known Use of bail out

1925

bail out Synonyms

Synonyms

bail, go, begone, book [slang], bugger off [British slang], bug off, bug out, buzz (off), clear off [chiefly British], clear out, cut out, depart, dig out, exit, get, get off, go off, move, pack (up or off), part, peel off, pike (out or off), pull out, push off, push on, quit, run along, sally (forth), scarper [British], shove (off), step (along), take off, vamoose, walk out

Antonyms

arrive, come, show up, turn up

Related Words

set out, start, strike out; abscond, decamp, escape, evacuate, flee, fly, get out, mizzle [chiefly British], run away, scat, scram, skip; go out, light out, step out; abandon, desert, forsake, vacate; emigrate; adjourn, remove, retire, retreat, withdraw

Near Antonyms

abide, dwell, lodge, remain, settle, stay, tarry; approach, close, near; hit, land, reach

Financial Definition of BAILOUT

bailout

noun

What It Is

A bailout is financial help for ailing companies.

How It Works

Company XYZ is in the newspaper industry and has seen a dramatic downturn in its advertising sales. The company's board believes that if it can launch an interactive digital version of its product, which has been in development for two years, it could become a viable business again.

Company XYZ publishes the only paper in the county, and Company ABC loves the newspaper. Company ABC agrees to lend Company XYZ enough money to launch the new digital product, and it prices the loan at an interest rate below what Company XYZ could get anywhere else. Essentially, Company ABC gives Company XYZ a bailout.

Bailouts can be loans, but they can also be stock, cash, bonds, or other forms of money.

Why It Matters

Bailouts are essentially monies intended to get companies out of trouble. Often, governments give bailouts to companies whose bankruptcies would cost what the government deems "too many jobs" or cause "too much" damage.

Bailouts are a challenge to capitalism in its purest sense. Critics of bailouts argue, for example, that companies should be left to succeed and fail on their own merits, and that supply and demand in the free markets will always determine the worth of goods and services. Supporters of bailouts argue that bailouts are sometimes the lesser of two evils when it comes to a company failing and displacing thousands of workers.

Source: Investing Answers