bailout

noun

bail·out | \ ˈbāl-ˌau̇t

Definition of bailout

(Entry 1 of 2)

: a rescue from financial distress

bail out

verb

bailed out; bailing out; bails out

Definition of bail out (Entry 2 of 2)

intransitive verb

1 : to parachute from an aircraft

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

Synonyms & Antonyms Example Sentences Learn More about bailout

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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

Recent Examples on the Web: Noun

Defining votes in Congress and Senate include opposition in 2002 to war in Iraq and his rejection of federal bailout packages designed to save the nation’s economy after the Great Recession. — Morgan Lee, The Seattle Times, "New Mexico senator, conservationist won’t run again in 2020," 25 Mar. 2019 In October, Politico reported that political will to push through certain coal bailouts was weak among White House staff. — Megan Geuss, Ars Technica, "Trump tried to rescue coal. Instead, coal capacity retirements doubled in 2018," 29 Nov. 2018 And now taxpayers are stuck with the bill of Trump’s $12 billion bailout. — Alexia Fernández Campbell, Vox, "US farms are going bankrupt at an alarming rate. Trump’s trade war is partially to blame.," 27 Nov. 2018 Highly Leveraged Four years after exiting its international bailout, Portugal is still one of the most leveraged economies in the European Union, with private debt hovering above 170 percent of gross domestic product. — Anabela Reis, Bloomberg.com, "Small Portuguese Firms Are Starting a New Trend," 25 June 2018 The replacement regulation would also serve as a bailout for aging coal power plants, some of the biggest sources of greenhouse gases. — Umair Irfan, Vox, "The National Climate Assessment shows that the costs of doing nothing on climate change are immense.," 26 Nov. 2018 Through a combination of patience, engagement and innovation, the ECB has so far prevented spillovers that threaten the currency union, while stopping short of national bailouts that would go against its mandate and European Union law. — Alessandro Speciale, Bloomberg.com, "ECB Prepares for Italy Standoff With Populists on Brink of Power," 23 May 2018 Ebersol said Tuesday that reports the Alliance was short on cash and needed a bailout from Dundon in order to make payroll were untrue. — Barry Wilner, The Seattle Times, "Hurricanes owner Dundon invests $250 million in Alliance," 19 Feb. 2019 The government is now negotiating a bailout package with the International Monetary Fund. — New York Times, "Emerging Markets Are Worrying Investors, Again," 23 May 2018

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.

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More Definitions for bailout

bailout

noun

Financial Definition of bailout

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

bailout

noun