Liquidator

DEFINITION of 'Liquidator'

In the most general sense, a person or entity that liquidates something. More specifically, a liquidator refers to an officer that is specially appointed to wind up the affairs of a company. The liquidator is legally empowered to act on behalf of the company in various capacities.

BREAKING DOWN 'Liquidator'

Liquidators are often used when a company goes bankrupt. One of the chief functions of many liquidators is to bring and defend lawsuits. Other actions include collecting outstanding receivables, paying off debts and finishing other corporate termination procedures.

RELATED TERMS
  1. Voluntary Liquidation

    A corporate liquidation that has been approved by the shareholders ...
  2. Dollar Volume Liquidity

    A stock or exchange-traded fund's share price times its average ...
  3. Liquidating Dividend

    A type of payment made by a corporation to its shareholders during ...
  4. Liquidate

    1. To convert assets into cash or equivalents by selling them ...
  5. Liquidity Crisis

    A negative financial situation characterized by a lack of cash ...
  6. Liquidity

    The degree to which an asset or security can be quickly bought ...
Related Articles
  1. Active Trading

    Understanding Liquidity Risk

    Make sure that your trades are safe by learning how to measure the liquidity risk.
  2. Investing Basics

    Understanding Liquidity Risk

    Learn about the two types of liquidity risk: funding liquidity risk and market liquidity risk.
  3. Options & Futures

    Understanding Financial Liquidity

    Understanding how this measure works in the market can help keep your finances afloat.
  4. Mutual Funds & ETFs

    ETF Liquidity: Why It Matters

    Lower levels of liquidity in exchange-traded funds make it harder to trade them profitably.
  5. Economics

    What Does Liquidation Mean?

    Creditors liquidate assets to try and get as much of the money owed to them as possible.
  6. Investing

    Small Cap Investing: How to Think About Illiquidity

    Do your homework, have a long term view, exercise patience, you'll find that investing in small market capitalization stocks is no riskier than investing in large stocks
  7. Stock Analysis

    What You Need To Know About ETF Liquidity

    Exchange-traded funds have become extremely popular over the past two decades, as investors have sought easier ways to invest across new markets and asset classes. With over a billion shares ...
  8. Investing Basics

    Explaining the Liquidity Preference Theory

    According to the liquidity preference theory, investors demand interest in return for sacrificing their liquidity.
  9. Investing

    Why Liquidity Matters in the Corporate Bond Market

    Professional analysis and constant monitoring of liquidity risk when investing in corporate bonds is highly important.
  10. Investing

    Using Liquidity Ratios

    Learn more about these quick and intuitive ratios you can use to analyze a stock's liquidity.
RELATED FAQS
  1. Is liquidity calculated by flow?

    Read about the differences between economic liquidity, financial liquidity and asset liquidity and how each respective type ... Read Answer >>
  2. What is liquidity risk?

    Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity ... Read Answer >>
  3. What is liquidity management?

    Take a look at the different definitions of liquidity, and find out how investors and businesses attempt to reduce exposure ... Read Answer >>
  4. What is the difference between a bank's liquidity and its liquid assets?

    Understand the relationship between a bank's liquid assets and its liquidity and how the financial crisis demonstrated the ... Read Answer >>
  5. What is the purpose of liquidation?

    Read about the role of liquidation in corporate finance and why it encourages discipline and efficiency in a market economy. Read Answer >>
  6. What is the difference between compulsory and voluntary liquidation?

    Learn about the primary differences between voluntary liquidation and compulsory liquidation, two ways of selling off company ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center