Printer Friendly
The Free Dictionary
1,087,610,079 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

liquidation
(redirected from Members' voluntary liquidation)

   Also found in: Legal, Wikipedia, Hutchinson 0.07 sec.
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.

Notes:
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.


Liquidation
Occurs when a firm's business is terminated. Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a long or short position. Related: Buy in, evening up, offset liquidity.

liquidation
1. The conversion of assets into cash. Just as a company may liquidate an entire subsidiary by selling it to another firm, so too may an investor liquidate by selling a particular type of security.
2. The paying of a debt.
3. The selling of assets and the paying of liabilities in anticipation of going out of business.
Case Study If eliminating dividends, laying off employees, selling subsidiaries, restructuring debt, and, finally, reorganization under Chapter 11 bankruptcy fail to resuscitate a business, the likely outcome is liquidation. Early 2001 witnessed the end of the line for Tennessee-based retailer Service Merchandise, a 42-year-old chain of catalog showrooms that proved unable to compete with large discounters such as Wal-Mart. Following a three-year attempt at reorganization under Chapter 11 bankruptcy, the firm announced it would close all 216 stores and liquidate its inventories and real estate. It was expected the asset liquidation would result in creditors being paid only a portion of their claims while stockholders of the company would receive nothing. The firm's stock was trading over the counter for 2ยข per share at the time of the announcement.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in
 
Financial browser? ? Full browser
 
Members of the Victorian Legislative Council, 2002-2006
Members of the Victorian Legislative Council, 2006-2010
Members of the VYSA
Members of the Welsh Assembly
Members of the Western Australian Legislative Assembly
Members of the Western Australian Legislative Assembly, 1996-2001
Members of the Western Australian Legislative Assembly, 2001-2005
Members of the Western Australian Legislative Assembly, 2005-2009
Members of the Western Australian Legislative Council
Members of the Western Australian Legislative Council, 1832-1870
Members of the Western Australian Legislative Council, 1890-1894
Members of the Western Australian Legislative Council, 1996-2001
Members of the Western Australian Legislative Council, 2001-2005
Members of the Western Australian Legislative Council, 2005-2009
Members of the Westminster Assembly
Members Only
Members Only (That's So Raven)
Members Only (TSR episode)
Members voluntary liquidation
Members voluntary liquidation
Members voluntary liquidation
Members voluntary liquidation
Members Without Dependants
Members' Lobby
Members' voluntary liquidation
Members-owned websites
membership
membership
membership
membership
membership
membership
Membership Action Plan
Membership Action Plan (NATO)
Membership Advisory Committee
membership card
membership card
Membership Corporation
Membership Drive Rally
Membership function
Membership function
Membership function (mathematics)
Membership history of The Church of Jesus Christ of Latter-day Saints
Membership Implementation Task Force
Membership Information Exchange
Membership Information Form
Membership Interview
Membership Libraries
Membership Logon
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.. Terms of Use.