Liquidation

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Dictionary Says

Definition of 'Liquidation'

1. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders.

2. Any transaction that offsets or closes out a long or short position.
Investopedia Says

Investopedia explains 'Liquidation'

Creditors liquidate assets to try and get as much of the money owed to them as possible. They have first priority to whatever is sold off. After creditors are paid, the shareholders get whatever is left with preferred shareholders having preference over common shareholders.
Search results for

'Liquidation'

  • A Guide To ETF Liquidation

    http://www.investopedia.com/articles/exchangetradedfunds/09/etf-out-of-business.asp
    A Guide To ETF Liquidation. ... This can lead to a liquidation, because ETFs with dwindling
    assets aren't profitable for the company that created the fund. ...

  • Liquidation Blues: When Mutual Funds Close

    http://www.investopedia.com/articles/mutualfund/09/mutual-fund-liquidation.asp
    Liquidation Blues: When Mutual Funds Close. February 23 2009 | Filed Under ยป
    Forwards, Mutual Funds. Mutual fund liquidations, also ...

  • In a corporate liquidation, why are unpaid taxes and wages paid ...

    http://www.investopedia.com/ask/answers/09/corporate-liquidation-unpaid-taxes-wages.asp
    ... Feedback. In a corporate liquidation, why are unpaid taxes and wages paid
    before general creditors but after secured bondholders? ...

  • Trading The Odds With Arbitrage

    http://www.investopedia.com/articles/trading/04/111004.asp
    ... Risk Arbitrage: Liquidation Arbitrage This is the type of arbitrage Gordon
    Gekko employed when he bought and sold off companies. ...

  • Distressed Debt An Avenue To Profit In Corporate Bankruptcy

    http://www.investopedia.com/articles/bonds/08/profit-from-bankruptcy.asp
    ... Equity investors rarely get paid anything in liquidation, but careful vultures that
    prey on the distressed debt of fallen companies can make big profits. ...

  • Find Investment Quality In The Income Statement

    http://www.investopedia.com/articles/stocks/06/advincome.asp
    ... Briefly stated, a completed sale, last in, first out liquidation (LIFO) rather than
    first in, first out liquidation (FIFO) valuation and shorter term ...

  • What are the differences between chapter 7 and chapter 11 ...

    http://www.investopedia.com/ask/answers/190.asp
    Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. ... Chapter
    7 bankruptcy is sometimes also called liquidation bankruptcy. ...

  • Spotting Companies In Financial Distress

    http://www.investopedia.com/articles/financial-theory/10/spotting-companies-in-financial-distress.asp
    What are the warning signs that a company is struggling - or
    worse, sinking - financially? Read on to find out.

  • What does it mean when the shares in my account have been ...

    http://www.investopedia.com/ask/answers/06/liquidatedaccount.asp
    An account liquidation occurs when the holdings of an account are sold off by the
    firm in which the account was created. In the majority of cases,. ...

  • Asset-Backed Commercial Paper Carries High Risk

    http://www.investopedia.com/articles/bonds/08/commercial-paper.asp
    ... the significant negative impact the subprime credit crunch had on these securities,
    see our special feature on the Subprime Meltdown.) Liquidation and Failing ...

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