C. A rescue of an entity, usually a corporation or an industry, from financial trouble.
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to pronunciationLegal Definition -
n. 1. A rescue of an entity, usually a corporation or an industry, from financial trouble. 2. An attempt by a business to receive favorable tax treatment of its profits, as by withdrawing profits at caapital-gain rates rather than by distributing stock dividends that wouold be taxed at higher ordinary-income rates.
Black's Law Dictionary® Eighth Edition © 2004
(also used as a verb "to bailout a company")
Current Usage -
U.K. Stocks Rebound After Government Bailout; Barclays Advances
By Sarah Jones
Oct. 13 (Bloomberg) -- The U.K.'s FTSE 100 Index rebounded from the worst weekly drop since 1987 after the government invested 37 billion pounds ($64 billion) to bailout three lenders and as authorities across Europe act to avert a banking collapse.
Barclays Plc jumped 6.5 percent after the lender announced plans to sell shares to private investors instead of turning to the government for help. HSBC Holdings Plc and Standard Chartered Plc climbed more than 8 percent. Royal Dutch Shell Plc and BHP Billiton led a rally in commodity producers on higher oil and metal prices.
The FTSE 100 gained 195.46, or 5 percent, to 4,127.52 at 11:17 a.m. in London as all but eight stocks rose after the U.K. said Royal Bank of Scotland Group Plc, HBOS Plc, and Lloyds TSB Group Plc will get an unprecedented government bailout.
``It is a relief,'' said Justin Urquhart Stewart, who helps oversee about $3.4 billion as a London-based director of 7 Investment Management. ``There is some action at last rather than just warm words.''
The benchmark index slumped 21 percent in last week's sell off, the steepest decline since the so-called Black Monday stock market crash in October 1987.
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