Bootstrapping

Bootstrapping alludes to a German legend about a Baron Münchhausen, who was able to lift himself out of a swamp by pulling himself up by his own hair. In later versions he was using his own boot straps to pull himself out of the sea which gave rise to the term .

Finance

In finance, bootstrapping refers to the procedure used to calculate the zero coupon yield curve, solving for the maturities where no instruments are available. The method uses interpolation to complete the yield curve, using available zero coupon securities with varying maturities.

Related Topics:
Finance - Zero coupon - Yield curve

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It may also mean a company acquiring a competitor with a sole reason of temporarily increasing earnings per share.

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Bootstrapping also means starting and operating a business with little or no money or assistance from outside investors.

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