What is the meaning of Liquidation?

Liquidation is the selling off of all assets of a company prior to the complete cessation of operations. Corporations that choose to liquidate declare Chapter 7 bankruptcy. In a liquidation, the claims of secured and unsecured creditors, bondholders and preferred stockholders take precedence over common stockholders.

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APABarry Goldsmith. (2010). liquidation. Retrieved September 23, 2026, from http://smartdefine.org/liquidation/definitions/1157304
ChicagoBarry Goldsmith. 2010. "liquidation" http://smartdefine.org/liquidation/definitions/1157304 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, liquidation, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/liquidation/definitions/1157304>.
MLABarry Goldsmith. "liquidation" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/liquidation/definitions/1157304>
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