DEFINITION of 'Baptism of Fire'

A difficult situation that a company or individual experiences that will result in either success or failure. Examples include Initial Public Offerings (IPOs), a new CEO hired to manage a struggling company, and hostile takeover attempts.

BREAKING DOWN 'Baptism of Fire'

A baptism of fire will either weaken or strengthen the entity involved.

The phrase is an allusion to the Bible in both Acts 2:3-4 and Matthew 3:11.

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