Financial Collapse
/ˌfɪnænʃəl kəˈlæps/
Definitions
- (n.) A severe and rapid decline in the value or stability of financial institutions or markets, often resulting in insolvency or systemic economic disruption.
The financial collapse of 2008 led to widespread regulatory reforms.
- (n.) A legal state where an entity is unable to meet its financial obligations, prompting bankruptcy or restructuring proceedings.
The corporation's financial collapse triggered immediate bankruptcy filings.
Forms
- financial collapse
Related terms
See also
Commentary
In legal contexts, 'financial collapse' often necessitates analysis of insolvency laws and regulatory responses; precise usage depends on whether describing market failure or a specific entity's financial failure.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.