liquidation Definition
- 1the process of closing a business, selling its assets, and using the proceeds to pay its debts
- 2the act of getting rid of something quickly, especially at a low price
Using liquidation: Examples
Take a moment to familiarize yourself with how "liquidation" can be used in various situations through the following examples!
Example
The company went into liquidation after failing to pay its debts.
Example
The store is having a liquidation sale to get rid of its inventory.
Example
The liquidation of the estate took several months to complete.
liquidation Synonyms and Antonyms
Synonyms for liquidation
Antonyms for liquidation
Phrases with liquidation
the sale of securities or other assets by an investor to cover a margin call from a broker
Example
The investor was forced to sell his shares in a forced liquidation.
the process of winding down a failing financial institution in a way that minimizes the impact on the financial system
Example
The government used an orderly liquidation process to wind down the failed bank.
the process of closing a solvent business voluntarily, usually because the owners want to retire or move on to other ventures
Example
The owners decided to pursue voluntary liquidation of their business.
Origins of liquidation
from Latin 'liquidare', meaning 'to melt'
Summary: liquidation in Brief
The term 'liquidation' [ˌlɪkwɪˈdeɪʃən] refers to the process of closing a business, selling its assets, and using the proceeds to pay its debts. It can also refer to getting rid of something quickly, often at a low price. Examples include 'The company went into liquidation after failing to pay its debts.' and 'The store is having a liquidation sale to get rid of its inventory.' Phrases like 'forced liquidation' and 'voluntary liquidation' describe different types of liquidation processes.
