Definition of Liquidation

What does the term "liquidation" mean? What is meant when a company is liquidated?

Liquidation occurs when a company is brought to an end. Another term for this - "dissolved".

Every company has assets and property that need to be properly distributed before the company can officially be dissolved. For instance, a bankrupt company might have assets including office desks, company vehicles and property.

Definition of Liquidation - Financial DictionaryFor a company to be dissolved, these assets must be distributed.

In order to liquidate a company, it must be determined:

-exactly what assets the company holds
-who has any claims to these assets

The job of a liquidator is to satisfy these claims as best as they can.

Creditors can include the liquidator themselves, secured creditors, unpaid employees, etc.

-- Articles That Mention Liquidation:

Report: Havoc in the Markets After Archegos Capital Management LLC Forced to Liquidate Shares

Robinhood Sees Surge in New Accounts, Downloads

Will Robinhood Go Bankrupt This Year? Bookmaker Puts Odds at Better Than 50%

Is Carl Icahn Liquidating His Stake in Herbalife?

What Was The Largest Bankruptcy In History?