bail out

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Bail Out

To give money to a company so that it avoids bankruptcy and is able to continue operations. Generally speaking, the term often refers to a government bailing out a private corporation. A bailout may take the form of a direct transfer of capital, or it may occur indirectly through low or no interest loans and subsidies. For example, in September of 2008 the insurance conglomerate AIG found itself in dire straits. The Federal Reserve bailed it out by extending $85 billion (and eventually $182 billion) in credit to the company. Proponents of bailouts say that they keep an economy afloat when an industry thought too big to fail otherwise would collapse. Critics contend that bailouts are inefficient and that non-competitive companies ought to fail. See also: Cash for clunkers.

bail out

To sell a security, generally at a loss, in anticipation of a further price decline.
References in periodicals archive ?
The British government is set to sell off some of the country's troubled banks bailed out and nationalised following the global financial crisis.
Mr Prentis will tell the 1,000 delegates that "fundamental flaws" in private finance initiative school and hospital building projects had "come home to roost" and have had to be bailed out.
Speaking on Radio 4's Today Programme, Mr Brown said billions for the NHS had been announced prior to the budget and hospitals who failed to keep to budgets would not be bailed out.