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

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

Japan Display has been looking for a bailout because Apple Inc.’s AAPL -1.07% iPhone lineup has been shifting away from liquid-crystal displays, the type that is supplied by the Japanese panel maker. — Takashi Mochizuki, WSJ, "China’s Silk Road Fund Denies It Has Been in Talks With Japan Display," 24 Jan. 2019 Although nuclear power would also receive a bailout under many of the plans that the DOE has proposed, the Trump administration has focused primarily on bailing out the faltering coal industry. — Megan Geuss, Ars Technica, "Trump’s coal rescue is getting more complicated," 16 Oct. 2018 Here’s some brief history: After the 2008 financial crash and the ensuing economic crisis, Chrysler and General Motors were on the ropes and came to Congress with their hands out looking for a bailout. — Umair Irfan, Vox, "The EPA’s bizarre justification for rolling back fuel efficiency standards," 3 Aug. 2018 The program has was designed to meet demands by the International Monetary Fund for a $12 billion bailout loan. — Samy Magdy, Fox News, "Egypt lawmakers decry bill 'selling' foreigners citizenship," 16 July 2018 Proposition 13 substantially lowered property tax revenue for schools and local governments, which turned to the state for bailouts. — George Skelton, latimes.com, "California's candidates for governor don't talk about taxes much. They need to start," 23 Apr. 2018 Many politicians also want new bailout funds or fiscal transfer mechanisms. — The Editorial Board, WSJ, "The Euro’s Next 20 Years," 30 Dec. 2018 Macron's vision includes turning Europe's existing bailout fund into a European Monetary Fund (EMF), to act as a buffer in any future financial crisis in the bloc. — Bloomberg News, Houston Chronicle, "Merkel warns of worldwide financial crisis," 4 July 2018 Possible decisions include upgrading the eurozone bailout fund, the European Stability Mechanism, and a long-term commitment to EU-wide deposit insurance. — Washington Post, "German minister urges jobless fund, tax to bolster euro," 9 June 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

8 Mar 2019

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Time Traveler for bailout

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