What does it mean to liquidate Meaning and Definition

Pronunciation

/lɪkwɪˈdeɪt/

Part of Speech

Verb

Definition

To convert assets into cash or other liquid form, often to pay off debts or meet financial obligations.

Examples

The company was forced to liquidate its assets to pay off its creditors.
She decided to liquidate her stocks to invest in real estate.

Synonyms

Sell off
Dispose of
Convert to cash

Antonyms

Invest
Hold onto

Additional Information

Liquidation can occur in various contexts, such as business, finance, and law. In business, companies may liquidate assets to avoid bankruptcy or to restructure their operations. In finance, investors may liquidate their holdings to realize gains or minimize losses.

In law, liquidation can refer to the process of winding up a company’s affairs, settling its debts, and distributing its assets to creditors and shareholders. Liquidation can be a voluntary or involuntary process, depending on the circumstances.

Etymology

The word “liquidate” comes from the Latin “liquidus,” meaning “fluid” or “liquid.” In the 16th century, the term began to be used in the context of finance to describe the conversion of assets into a more liquid form.

Usage Notes

When using the word “liquidate,” it’s essential to consider the context and intended meaning. In business, liquidation often carries negative connotations, implying financial difficulties or failure. However, in finance, liquidation can be a strategic decision to realize gains or optimize investments.

Cultural References

The concept of liquidation has been featured in various films, literature, and media, often symbolizing financial struggles or crisis.

Idiomatic Expressions or Phrases

There are no common idiomatic expressions or phrases that include the word “liquidate.” However, the phrase “liquid assets” is often used to describe funds that are readily available for use.

Related Words or Phrases

Insolvency, bankruptcy, asset sale, cash conversion, financial restructuring.

Collocations

Common collocations include “liquidate assets,” “liquidate debts,” “liquidate stocks,” and “liquidate company.”

Frequency of Use

The word “liquidate” is moderately frequent in modern language, often used in business, finance, and economic contexts.