bailout

bailout, n.

1. A rescue of an entity, usu. 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 capital-gain rates rather than distributing stock dividends that would be taxed at higher ordinary-income rates. [Cases: Internal Revenue 3750. C.J.S. Internal Revenue § 395.]


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