partial liquidation

partial liquidation definition - business

partial liquidation

A distribution or one of a series of distributions by a corporation in cancellation or redemption of all or a part of the firm's stock. For example, a company distributes unused insurance proceeds received when a fire has destroyed a portion of the business, resulting in a cessation of a part of its activities and a contraction in the business.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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