bailout

noun

bail·out | \ˈbāl-ˌau̇t

Definition of bailout

(Entry 1 of 2)

: a rescue from financial distress

bail out

verb

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

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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

Federal regulators took over the two companies during the 2008 financial crisis, eventually injecting them with $187.5 billion in bailout money. — Gregory Mott, BostonGlobe.com, "Fannie-Freddie rise as White House proposes privatization," 22 June 2018 Federal regulators took over the two companies during the 2008 financial crisis, eventually injecting them with $187.5 billion in bailout money. — Bloomberg, latimes.com, "White House wants Fannie Mae and Freddie Mac privatized," 21 June 2018 There is now also a bailout fund to help members that run into trouble. — David Mchugh, Fox News, "Is the euro a problem? A look at its role in Italy's drama," 1 June 2018 Former Finance Minister Rodrigo Rato was handed a jail term for the misuse of corporate credit cards while leading Bankia SA to the brink of a collapse that forced the government to seek 41 billion euros ($48 billion) in European bailout funds. — Fortune, "Spain's Prime Minister Was Just Ousted, Fueling Even More Uncertainty in Europe," 1 June 2018 That contributed to the insurance giant sliding to the brink of collapse before a $182 billion federal bailout. — Laurence Fletcher, WSJ, "‘Man Who Crashed the World’ Turns to Philanthropy, Real Estate," 2 July 2018 Greece and several other countries in southern Europe were forced to impose painful austerity measures in return for bailouts from their richer northern neighbors. — Niki Kitsantonis, New York Times, "Greece Prepares to Stagger Back From Debt Crisis, the End of Bailouts in Sight," 21 June 2018 Economic output shrank almost 10 percent from 2008 to 2013, prompting the country to seek a €41 billion ($48 billion) bailout from the European Union. — Rodrigo Orihuela, Bloomberg.com, "How Spain Got Its Swagger Back," 19 June 2018 Lawmakers approved a bailout for the troubled city, but balked when it was revealed in March that the state would be paying off Hartford’s $550 million in general obligation debt for the next two decades. — Jenna Carlesso, Courant Community, "Special Election Will Cost Cash-Strapped Hartford $46K," 12 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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Last Updated

18 Oct 2018

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The first known use of bailout was in 1925

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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