Forced Liquidation

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Dictionary Says

Definition of 'Forced Liquidation'

An action taken by brokerage houses that offsets and closes all positions within delinquent customer accounts in order to reduce exposure.
Investopedia Says

Investopedia explains 'Forced Liquidation'

Forced liquidations generally occur after warnings have been issued by the broker regarding the under-margin situation of an account. Should the account holder choose not to meet the margin requirements, the broker has the right to sell off the positions.
Search results for

'Forced Liquidation'

  • Asset-Backed Commercial Paper Carries High Risk

    http://www.investopedia.com/articles/bonds/08/commercial-paper.asp
    ... Example - Forced Liquidation of ABCP Assets For example, forced liquidation
    might occur if mark-to-market impairment is greater than 50%. ...

  • Stop Hunting With The Big Forex Players

    http://www.investopedia.com/articles/forex/06/StopHunting.asp
    ... Trading without stops in the currency market means that the trader will inevitably
    face forced liquidation in the form of a margin call. ...

  • Is A Reverse Mortgage Right For You?

    http://www.investopedia.com/articles/mortgages-real-estate/08/use-of-reverse-mortgage.asp
    ... in the repossession of the home if the homeowner does eventually require care, but
    this may still be a preferable alternative to forced liquidation of all of ...

  • Liquidation Blues: When Mutual Funds Close

    http://www.investopedia.com/articles/mutualfund/09/mutual-fund-liquidation.asp
    ... A liquidation involves the sale of all of a fund's assets and the distribution of
    the ... At best, it means shareholders are forced to sell at a time not of their ...

  • Money Market Mayhem: The Reserve Fund Meltdown

    http://www.investopedia.com/articles/economics/09/money-market-reserve-fund-meltdown.asp
    ... When even that wasn't enough, the fund was forced to suspend operations and
    commence liquidation. Advertisement - Article continues below. ...

  • CEO Success Stories Of 2010 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1210/CEO-Success-Stories-Of-2010.aspx
    ... Hogan Hogan was appointed CEO of the ABB Group just months before the US financial
    collapse that forced the liquidation, merger or takeover of Lehman Brothers, ...

  • Financial Careers According To Hollywood

    http://www.investopedia.com/articles/financialcareers/08/hollywood-financial-careers-wall-street-movies.asp
    ... Hunter was a fantastically successful commodity trader until he lost $6 billion
    in the span of a couple weeks and forced his company into liquidation. ...

  • Monthly Review: July Wrap Up

    http://stocks.investopedia.com/stock-analysis/2009/Monthly-Review-July-Wrap-Up-GS-JPM-MSFT-INTC-WFC0730.aspx
    ... the second time in California history that the state was forced to print ... in July -
    selling virtually all of its assets from the Motors Liquidation Company (OTC ...

  • Intro To Open Interest In The Futures Market

    http://www.investopedia.com/articles/technical/02/110602.asp
    ... the price moves out of the trading range, these traders are forced to abandon ... 8.
    A decline in both price and open interest indicates liquidation by discouraged ...

  • Don't Go Broke Buying Bankrupt Stocks

    http://www.investopedia.com/articles/stocks/09/bankrupt-stocks.asp
    ... As stated above, the reason a company declares or gets forced into bankruptcy ... receive
    distressed prices, as buyers will not pay up for assets in liquidation. ...

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