Glossary of Terms

Liquidation 2019-06-26 08:00:00

Liquidation

Liquidation is the process of converting assets in to cash or cash equivalents. Liquidation can occur when a firm goes bankrupt and thus needs to extract cash from its assets with readily marketable value to satisfy the demands of creditors and investors, or when an investor decides to give up his or her position in a security in exchange for the cash value of that security at a given point in time.