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The term bail out in financial terms is almost similar to the term out on bail as per legal law. If someone has committed a crime and is jailed they need a bail to come out of jail. Until a Bail is issued the convict has to serve his term in Jail.

Similarly if a company is in a financial crisis and is about to go bankrupt they would be looking out prospective buyers or people who can help them manage the crisis. At such a situation, some other company may opt to help them out of the crisis by either buying a stake in the company or by taking that company over. This process would require the approval of all the share holders of both the companies and would take a lot of time to materialize. Once it is approved by the share holders and also by the law makers the buying company would infuse fresh capital into the bought company and help stabilize the financial position of that company.

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14y ago

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Related Questions

Can you get a loan from the bailout?

No, the bailout is meant to allow funds for business and banks to operate on credit. You would have to qualify for a loan.


What is the financial bailout package crisis?

There is no such crisis as the financial bailout package crisis. the bailout was created to overcome the financial crisis.


What is the latest bailout plan?

The latest "bailout" is the automotive bailout of the Big Three automakers, Ford, GM, and Chrysler. Legislation was introduced on Dec. 8th.


How many votes yes for bailout and how many no for bailout?

205 for it and 228 against it.


What were the major economic events 2008?

The Financial Bailout and the Big 3 bailout


How much bailout money did FORD receive?

Ford did not receive any bailout money.


What does bailout mean?

See: http://en.wikipedia.org/wiki/Bailout Bailout refers to the action of helping out somebody in trouble. You can compare the bailout in financial terms to the bail or parol we get for someone in jail. In bailout, a company with strong financial status offers to help a company that is in dire financial needs. Such a scenario is where the stronger company bails out the weaker one.


Who asked congress for bailout?

Specifically speaking, nobody asked for a bailout. Out of the options that were considered to revive the economy this bailout was considered the most effective way and hence it came into existence.


How much bailout money did citi corp receive?

The Citi group bailout was agreed for $45Billion same as the Bank of America bailout. The numbers about who got what and how they are spending it are pretty much a secret.


Has Ford changed the price of its vehicles since the automaker bailout?

Ford was one of the very few automakers who did not take any bailout money from the government, thus the bailout has not affected their pricing.


What is a bailout?

A bailout is an act of rescue, especially of a financial nature, or a backup supply of air in scuba diving.


What are the release dates for Bailout - 2012?

Bailout - 2012 was released on: USA: 16 December 2012 (limited)

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