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liquidity event
noun
- the ending of an investor's involvement in a business venture with a view to realizing a gain or loss from the investment
Example Sentences
Since then its U.S. operations have dropped a rule requiring a "liquidity event", such as an IPO or company sale, as a condition for the vesting to occur.
In a Friday report, analysts at Wells Fargo said that Hawaiian Electric is “potentially under severe financial duress” and “could face a future liquidity event” — pointing to the company’s struggles to bring in external funds, recent downgrading of credit ratings from the S&P, as well as the costs of normal operating expenses and an upcoming $100 million debt maturity for the utility.
It said weakness in SVB’s “preparedness for a contingent liquidity event” might have contributed to the bank’s inability to access contingency funding sources when it was needed.
The company previously set a "liquidity event", such as an IPO or company sale, as a condition for the vesting to occur, the sources added.
Under current law, U.S. regulators are supposed to go to Congress when they determine a “liquidity event” requires an increase in the amount the government will guarantee.
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