A bailout is a financial term referring to an extraordinary act of lending, or outright giving, capital to an entity (a company, bank, individual, etc.) that is in danger of failure due to bankruptcy or insolvency. A bailout can also be given to a failing entity to allow it to exit gracefully without leading to a contagion.
Bailout
Related Terms
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Financial contagion is when problems in one part of the financial world spread to other parts of the financial world
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A stock, also known as a share or equity, represents a fraction of ownership in a company.
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The term bailout became well known during the 2008 Great Financial Crisis (GFC) as governments around the world spent almost $1 trillion to rescue their banks from collapse. The term bail-in was...
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A bank run takes place when a bank’s depositors try to withdraw all their money as they worry about the bank’s stability.
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Parabolic describes a market that moves a great distance in a very short period of time, frequently moving in an accelerating fashion that resembles one half of a parabola. Parabolic moves can be...