Liquidation
/ˌlɪkwɪˈdeɪʃən/
Definitions
3 meaningsThe act of converting assets into cash, typically to settle debts or distribute proceeds.
/ˌlɪkwɪˈdeɪʃən/
The process of bringing a business or company to an end by selling its assets and distributing the proceeds to claimants.
The liquidation of the company's assets was a complex process.
💡 Simply: Imagine a store that's closing down. They have to sell everything they own (like the shelves, the computers, the stuff on the shelves) for money. That selling of everything is a liquidation. It means they're turning everything into cash.
👶 For kids: When a company closes and sells everything to pay its bills, that's liquidation!
More Examples
The shareholders received a small return after the liquidation.
The company's creditors were paid off during the liquidation.
How It's Used
"The company went into liquidation after failing to secure additional funding."
"The court ordered the liquidation of the bankrupt estate."
The process of settling claims and distributing assets in a business or financial context.
/ˌlɪkwɪˈdeɪʃən/
The act of converting assets into cash or to settle debts.
The liquidation process was overseen by an independent trustee.
💡 Simply: Imagine a situation where someone needs to pay their bills. Liquidating assets is like selling things like a house or car to get cash quickly to pay those bills or debt. It involves converting assets into cash so bills can get paid.
👶 For kids: It's like when you sell your toys so you have money.
More Examples
Liquidation of the portfolio provided the funds needed to meet the margin call.
The company decided to go for liquidation to reduce its expenses.
How It's Used
"The company faced liquidation of assets to cover its debts."
In some contexts, it can mean the killing or destroying of someone.
/ˌlɪkwɪˈdeɪʃən/
The process of ending an activity or eliminating something.
The politician called for the liquidation of the rival political party.
💡 Simply: Imagine you're trying to get rid of all the cookies in the house. Liquidating in this sense is like removing something completely—getting rid of a problem, an enemy, or even something you no longer want to do.
👶 For kids: It's like when you want to get rid of something, like bad guys in a movie.
More Examples
The company announced the liquidation of its outdated product line.
The liquidation of the old government was followed by a new era.
How It's Used
"The liquidation of the old regime was followed by a period of transition."
"The political opponents demanded the liquidation of the corrupt organization."
Synonyms & Antonyms
Idioms & expressions
Liquidation value
The estimated amount of money an asset would bring if sold during liquidation.
"The liquidation value of the company's assets was significantly lower than their book value."
Voluntary liquidation
The process of liquidating a company initiated by its own shareholders or directors.
"The company decided on voluntary liquidation due to insurmountable debt."
Compulsory liquidation
The process of liquidating a company ordered by a court.
"The court ordered compulsory liquidation after the company failed to meet its obligations."
From Latin liquidare ('to melt, make fluid'), from liquidus ('fluid, liquid'). It entered English in the 16th century, initially referring to the process of making something liquid or melting. The financial and legal sense developed later.
Used in legal and business contexts since the 16th century, referring initially to making something liquid, then evolving to include the financial meaning.
Memory tip
Think of melting down assets to get cash quickly.
Word Origin
"to melt, make fluid"