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bootstrapping investment & finance definition
- The act of an individual starting a company with very little money and very little credit and doing everything on the cheap. A start-up company that has little money is said to be bootstrapping its way to profitability. Originated from the expression “pulling yourself up by your bootstraps,” from a Horatio Alger story of moving from rags to riches.
- The process of creating a theoretical spot-rate curve by using one yield projection as the basis for creating the yield of the next maturity. Traders use this method to determine what various interest rates will be along the yield curve when they have only one interest rate.