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Definition: Bootstrapping

Bootstrapping is an entrepreneurial initiative in which an individual or a group invests or nurtures a company by using personal funding or a new company’s operating revenues.

This method, though provides greater control to the individual, also puts greater financial risk on him.

Also, bootstrapping is the method used to determine the yields for Treasury zero-coupon securities with various maturities by the interpolation method. It is useful because treasury securities are not available for all time periods.

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