What is the meaning of 'bailout'? Bailout is a finance term. It means to give a company money even though that company is doing poorly. You will hear it often when talking to people about the financial crisis of 2007-2008 in the business world of English.

Usually, an investor will bail out a company because they think they can take the company from poor performance to good performance, but people start to get angry when governments start bailing out companies.

In the U.S. In 2008, many banks were bailed out by the federal government. The feds - government people - thought that if the banks failed, the world economy would collapse. Whether it would or not, we may never know now, because the U.S. Government gave money to the banks.

Bail out comes from when you are in a boat that is filling with water. If the boat fills up with too much water, it will sink to the bottom. By taking a container and filling it up with water, then quickly dumping the water outside the boat, you can remove the water inside the boat and keep it floating longer.

Just imagine the boat is a company, and the water is money problems.

You use bailout as a noun (The store got a bailout) or a verb. “We had to bail out the store.”

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Outro Video Credit: “Outro Like, Comment, and Subscribe” by Móm Đặc Biệt (Youtube Creative Commons License)
Photo Credits: Bailout by Del Goodchild on Flickr (attribution 2.0 license) - [ Ссылка ]


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