Forced Liquidation(redirected from Forced Liquidations)
A situation in which an outside party can force the sale of an asset belonging to another. For example, a bank may force a borrower to sell his/her collateral in order to repay the debt. Likewise, a brokerage can force a client to sell securities if the client is unable to meet a margin call and preferred stockholders can (sometimes) force the liquidation of a publicly-traded company if it does not make preferred dividend payments.
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