Liquidation means the sale of assets of a company to raise capital and pay off debt, such as to shareholders or creditors. Liquidation may be voluntary when a company is shutting its business, or compulsory when it is forced to shut down its business due to insolvency.
Post Type Archives: Glossary
Liquidity
Liquidity refers to the ability of an asset or investment to be easily converted into cash or be used to make payments. High liquidity means that an asset can be quickly bought or sold without significantly affecting its price. Liquid assets usually come with a short maturity tenure and a low risk profile and include: …