Liquidation

When a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a Long or short position. Related: buy in, evening up, offsetliquidity. The New York Times Financial Glossary

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liquidation liq‧ui‧da‧tion [ˌlɪkwˈdeɪʆn] noun [countable, uncountable] FINANCE
1. the action of selling an investment:

• Manila's market dropped 26.08 points following a liquidation of foreign investments.

2. when a company stops operating because it is in financial difficulty and its assets are sold to pay its debts:

• Creditors have taken steps to force the studio into liquidation.

• No doubt more firms will go into liquidation because they took on too much debt.

comˌpulsory liquiˈdation also ˌforced liquiˈdation FINANCE
when a company in financial difficulty is forced to go into liquidation by the people and organizations to which it owes money:

• Any creditor may decide to lodge a court petition for compulsory liquidation.

ˌvoluntary liquiˈdation FINANCE
when a company in financial difficulty decides to go into liquidation, rather than being forced to by the people and organizations to which it owes money:

• Creditors have been asked to approve a voluntary liquidation plan for the group.

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   The sale of assets of a bankrupt company to pay creditors. Any remaining surplus is distributed to shareholders.

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liquidation UK US /ˌlɪkwɪˈdeɪʃən/ noun [C or U]
LAW, FINANCE a situation in which a company stops operating and sells all its assets in order to pay its debts: go into liquidation »

After three years of heavy losses the company went into liquidation with debts totalling £100 million.

put sth into liquidation »

They were forced to put the company into liquidation in June.

ACCOUNTING, FINANCE a situation in which an asset is sold in order to get cash: »

Analysts generally regard the liquidation of shares by corporate insiders as bad news.

See also COMPULSORY LIQUIDATION(Cf. ↑compulsory liquidation), FORCED LIQUIDATION(Cf. ↑forced liquidation), INVOLUNTARY LIQUIDATION(Cf. ↑involuntary liquidation), VOLUNTARY LIQUIDATION(Cf. ↑voluntary liquidation)

Financial and business terms. 2012.

Synonyms:

Look at other dictionaries:

  • Liquidation — Liquidation …   Deutsch Wörterbuch

  • liquidation — [ likidasjɔ̃ ] n. f. • 1416; de liquider I ♦ 1 ♦ Dr. Action de calculer le montant de sommes à régler; le règlement de ces sommes. Liquidation des dépens par le tribunal. Liquidation de l impôt : calcul des impôts à recouvrer sur chaque… …   Encyclopédie Universelle

  • liquidation — index aberemurder, assassination, cancellation, composition (agreement in bankruptcy), discharge (payment), dispatch (act of putting to death) …   Law dictionary

  • liquidation — Liquidation. s. f. v. Action par laquelle on liquide en matiere d affaires ce qui estoit embarassé & incertain. Liquidation de despens. liquidation d interests. il travaille à la liquidation de ses dettes, de son bien &c …   Dictionnaire de l'Académie française

  • Liquidation — Liq ui*da tion (l[i^]k w[i^]*d[=a] sh[u^]n), n. [Cf. F. liquidation.] The act or process of liquidating; the state of being liquidated. [1913 Webster] {To go into liquidation} (Law), to turn over to a trustee one s assets and accounts, in order… …   The Collaborative International Dictionary of English

  • liquidation — [lik΄wi dā′shən] n. a liquidating or being liquidated go into liquidation to close one s business by collecting assets and settling all debts …   English World dictionary

  • Liquidation — (lat.), die Auseinandersetzung nach beendigtem Geschäft oder nach geleisteter Dienstverrichtung; daher liquidieren, soviel wie Kosten, Gebühren etc. berechnen. Auch die Rechnung selbst heißt L. Der liquidierte Betrag wird Liquidum genannt, doch… …   Meyers Großes Konversations-Lexikon

  • Liquidation — (lat.), Kostenberechnung; Abwicklung eines aufgegebenen Geschäfts; Liquidationskassen, Liquidationsbureaus, handelstechnische Einrichtungen zur Vereinfachung der Abrechnung von Zeitgeschäften; Liquidātor, bei Auflösung von Handelsgesellschaften… …   Kleines Konversations-Lexikon

  • liquidation — the dissolution of a company, or individual; usually operations cease and assets are sold by auction; Chapter 7 is usually employed for liquidations, businesses or individuals (Glossary of Common Bankruptcy Terms) The sale of a debtor s… …   Glossary of Bankruptcy

  • Liquidation — Liquidation,die:1.⇨Auflösung(1)–2.⇨Rechnung(1) …   Das Wörterbuch der Synonyme

  • liquidation — 1570s, noun of action from L.L. liquidare (see LIQUIDATE (Cf. liquidate)); originally as a legal term in reference to assets; of inconvenient groups of persons, 1925 in communist writings …   Etymology dictionary

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