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English definition of “liquidation”

liquidation

noun [C or U]
 
 
/ˌlɪkwɪˈdeɪʃən/
LAW, FINANCE a situation in which a company stops operating and sells all its assets in order to pay its debts: go into liquidation After three years of heavy losses the company went into liquidation with debts totalling £100 million.put sth into liquidation They were forced to put the company into liquidation in June.
ACCOUNTING, FINANCE a situation in which an asset is sold in order to get cash: Analysts generally regard the liquidation of shares by corporate insiders as bad news.
→ See also compulsory liquidation, forced liquidation, involuntary liquidation, voluntary liquidation
(Definition of liquidation from the Cambridge Business English Dictionary © Cambridge University Press)
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