Bullet

AAA

DEFINITION of 'Bullet'

1) A one-time lump-sum repayment of an outstanding loan, typically made by the borrower after very little, if any, amortization of the loan. This can also refer to a loan that requires a disproportionately large portion (or even all) of the loan to be repaid at maturity.

2) A slang term for a letter of rejection sent to a job applicant, informing the candidate that he or she has not been offered the job, has been denied an interview or some similar form of rejection.

INVESTOPEDIA EXPLAINS 'Bullet'

1) Loans can have provisions built into them upon issuance to allow borrowers to make a one-time lump-sum repayment of the loan at their discretion. This option can prove useful for borrowers, particularly if their financial situation significantly changes for the better shortly after the loan is issued. For example, an early lump-sum repayment can considerably lower the interest expense accrued over the course of the loan.

2) Companies typically send out bullet letters once they have filled the position they had available, or (if the bullet letter denies an interview) once the company has selected its entire interview pool. In other cases, a company may simply state in the job advertisement that it will only contact applicants who are selected for an interview.

RELATED TERMS
  1. Bullet Loan

    Any loan that requires a balloon payment at the end of the term ...
  2. Bullet Repayment

    A lump sum payment for the entire loan amount paid at maturity. ...
  3. Balloon Maturity

    1. A repayment schedule for a bond issue where a large number ...
  4. Lump-Sum Distribution

    A one-time payment for the entire amount due, rather than breaking ...
  5. Repayment

    The act of paying back money previously borrowed from a lender. ...
  6. Bullet Bond

    A debt instrument whose entire face value is paid at once on ...
Related Articles
  1. Avoiding Foreclosure Scams
    Personal Finance

    Avoiding Foreclosure Scams

  2. Lump Sum Versus Regular Pension Payments
    Retirement

    Lump Sum Versus Regular Pension Payments

  3. Option ARMs: American Dream Or Mortgage ...
    Home & Auto

    Option ARMs: American Dream Or Mortgage ...

  4. I've come into a large amount of money. ...
    Investing

    I've come into a large amount of money. ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center