- The definition of liquidate is to turn assets into cash, or to sell assets and pay creditors.
- When you sell your shares of stock and turn them into cash, this is an example of when you liquidate.
- When a furniture store sells off its inventory and goes out of business, this is an example of when it liquidates.
liquidate definition by Webster's New World
- to settle by agreement or legal process the amount of (indebtedness, damages, etc.)
- to settle the accounts of (a bankrupt business firm that is closing, etc.) by apportioning assets and debts
- to pay or settle (a debt)
- to convert (holdings or assets) into cash
- to dispose of or get rid of, as by killing
Origin: ; from Midieval Latin liquidatus, past participle of liquidare, to make liquid or clear ; from Classical Latin liquidus, liquid
liquidate definition by American Heritage Dictionary
verb liq·ui·dat·ed, liq·ui·dat·ing, liq·ui·dates verb, transitive
- a. To pay off (a debt, a claim, or an obligation); settle.b. To settle the affairs of (a business firm, for example) by determining the liabilities and applying the assets to their discharge.
- To convert (assets) into cash.
- To put an end to; abolish.
- To put to death; kill.
- To settle a debt, a claim, or an obligation.
- To settle the affairs of a business or an estate by disposing of its assets and liabilities. See Synonyms at eliminate.
Origin: Late Latin liquidāre, liquidāt-, to melt, from Latin liquidus, liquid; see liquid.
- liqˌui·daˈtion noun
- liqˈui·daˌtor noun
liquidate - Business Definition
- To repay a debt.
- To sell a firm's assets and pay off its debts.
liquidate - Investment & Finance Definition
- To sell all of a business’s assets and close down the business. An involuntary liquidation is called a Chapter 7 bankruptcy.
- To close a brokerage account and sell its stocks and investments.
- To close open futures and options positions. If futures are owned, an equivalent amount is sold to liquidate a position. If futures have been sold short, then the equivalent position is bought to liquidate a position.
liquidate - Legal Definition
- In bankruptcy or insolvency, to terminate a business by the sale of its assets to pay its liabilities.
- To pay a debt.
- To convert hard assets into cash.
- To set, by contract or stipulation, a fixed amount for damages resulting from a particular harm.