Liquidation

RECENT NEWS
DealBook: In Disarray, Mt. Gox Signals a Move Toward Liquidation
New York Times  Apr 17  Comment 
In a statement posted on its website, the Tokyo-based company said a local court had dismissed its request that it be allowed to try to rehabilitate its business.
In Disarray, Mt. Gox Signals a Move Toward Liquidation
New York Times  Apr 16  Comment 
The Bitcoin exchange, which disclosed this year that hackers had made off with a half-billion dollars’ worth of the virtual currency, said it had struggled to rehabilitate itself.
Mt. Gox Files for Liquidation
Wall Street Journal  Apr 16  Comment 
Defunct bitcoin exchange Mt. Gox files for liquidation: WSJ
Yahoo  Apr 16  Comment 
Tokyo court: Bitcoin exchange Mt. Gox will liquidate
USAToday.com  Apr 16  Comment 
REPORT: MtGox To Liquidate
Clusterstock  Apr 16  Comment 
MtGox has asked to liquidate its holdings after a Japanese court dismissed its plan for reorganization, the Wall Street Journal's Takashi Mochizuki and Katy Stech report. In February, the exchange, once the world's largest, claimed that 850,000...
The Alpine Group, Inc. Announces Initial Liquidation Distribution of $.25 per Share
DailyFinance  Apr 14  Comment 
EAST RUTHERFORD, NJ -- (Marketwired) -- 04/14/14 -- The Alpine Group, Inc. (PINKSHEETS: APNI) announced today that its Board of Directors had approved an initial distribution to shareholders of $.25 per share pursuant to the Company's Plan of...




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Business Liquidation

The process of selling assets for cash.

This situation generally arises when a company can no longer carry out it's business as intended, by making profits and, share holders do not have any chance of gaining from investing in the company.

The cash generated out of liquidation is usually spent on reducing debts that company own to its lenders.

For example, Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008 and now in Jan 2009, Barclay's [which took over Lehman, LEHMQ:US] is in the process of liquidating it, though Lehman has a couple of trillion dollars in assets.

Winding up would mean liquidating the assets of a corporation or partnership, settling accounts, paying bills, distributing remaining assets to shareholders or partners, and then dissolving the business. Winding up a non-profit corporation requires a plan for distribution of assets to some charitable or other non-profit entity. [1]

Investors Liquidation

Liquidation is the conversion of assets into cash by an Investor getting rid of a position in a particular type of security. [1] When Investors convert assets into cash for there own personal accounts, they may have no reason too convert, and may spend the proceeds on whatever they want, whenever they want.

Liquidation is simply the conversion of assets into cash, liquidity refers to how quickly you can convert your assets into cash. [2] For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio. [3]

c.1575, "to reduce to order, to set out clearly," sense of "clear away" (a debt) first recorded 1755. The meaning "wipe out, kill" is from 1924. [2]

References

  1. ↑ Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott Accounting Professor ISBN-10: 0618176519 pg 212
  2. ↑ Stock Investing for Dummies‬ By Paul Mladjenovic pg22 ISBN-10: 0470401141
  3. ↑ Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. ISBN-10: 0618176519 pg212
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