liquidation

American  

[lik-wi-dey-shuhn] / ˌlɪk wɪˈdeɪ ʃən /

noun

1. the process of realizing upon assets and of discharging liabilities in concluding the affairs of a business, estate, etc.

2. the process of converting securities or commodities into cash.

3. the state of being liquidated.

   an estate in liquidation.

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liquidation British  

/ ˌlɪkwɪˈdeɪʃən /

noun

1. 1. the process of terminating the affairs of a business firm, etc, by realizing its assets to discharge its liabilities

   2. the state of a business firm, etc, having its affairs so terminated (esp in the phrase to go into liquidation )

2. destruction; elimination

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liquidation Cultural  

1. The conversion of the assets of a firm into cash, often just before the firm goes out of business.

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Other Word Forms

• nonliquidation noun
• preliquidation noun
• reliquidation noun

Etymology

Origin of liquidation

First recorded in 1565–75; liquidate + -ion

Example Sentences

Wall Street private-credit firms face pressure as investors seek money back from loans to shaky sectors, raising fears of forced liquidations.

From The Wall Street Journal

The legal document protects a company from creditors for a short period, initially 10 business days, to either find a buyer, find an administrator, or enter liquidation.

From BBC

The recent selloff has also been amplified by forced liquidations, as investors unload positions to cover losses in volatile equities and commodities markets, according to market watchers.

From The Wall Street Journal

Those shares’ liquidation preference—the government’s claim on the companies’ value before other shareholders get paid—has risen to about $370 billion as of this month.

From Barron's

“A very simple rule of thumb for tactical liquidation is when gold and equities crash together, which usually signals margin call / liquidation-esque behavior,” they say.

From MarketWatch

Related Words

• clearance
• destruction
• eradication
• expulsion
• removal
• withdrawal