What is Bail Out?

Legal Definition
A bailout is a colloquial term for giving financial support to a company or country which faces serious financial difficulty or bankruptcy. It may also be used to allow a failing entity to fail gracefully without spreading contagion. A bailout can, but does not necessarily, avoid an insolvency process.

The term is maritime in origin being the act of removing water from a sinking vessel using a smaller bucket. A bailout differs from the term bail-in (coined in the 2010s) under which the bondholders and/or depositors of global systemically important financial institutions (G-SIFIs) are forced to participate in the process, but taxpayers supposedly are not. Some governments have the power to participate in the insolvency process: for instance, the U.S. government intervened in the General Motors bailout of 2009–2013.
-- Wikipedia
Legal Definition
1. selling too much stock. It shows that the firm may be going under. 2. giving emergency help to a company to keep it going.