What is Bootstrapping?

Legal Definition
In finance, bootstrapping is a method for constructing a (zero-coupon) fixed-income yield curve from the prices of a set of coupon-bearing products, e.g. bonds and swaps.[1] A bootstrapped curve, correspondingly, is one where the prices of the instruments used as an input to the curve, will be an exact output, when these same instruments are valued using this curve. Here, the term structure of spot returns is recovered from the bond yields by solving for them recursively, by forward substitution: this iterative process is called the bootstrap method. The usefulness of bootstrapping is that using only a few carefully selected zero-coupon products, it becomes possible to derive par swap rates (forward and spot) for all maturities given the solved curve.
-- Wikipedia
Legal Definition
1. When a business is started up and built out of little to nothing. Boot strappers need their own personal income, nearly no operating costs and usually only take cash for transactions when first starting to stay in business. Many of the largest companies today started as boot strappers or even garage companies. Due to the dependent nature on starting a business, most companies starting up with no money still follow this road. 2. When one period is predicted because of the predicted data for the current period. 3. A business fund that tries to avoid any outsourced funding locations. They will not rely on outside banks or receive interest loans they have to pay back if the money is coming straight out of pocket from the company.