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bailout


Definition

The provision of financial help or liquidity to a corporation that otherwise would be on the brink of failure or bankruptcy. A bailout might be performed for the benefit of the one providing the monetary aid (someone who bails out a struggling company in order to gain control of that company), or simply for the benefit of the company and anyone who consumes the goods or services offered by that company. Some historical bailouts occurred during the Great Depression and the S&L Crisis, and also have occurred more recently as the United States government bailed out many financial organizations in 2008 and 2009.


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