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liquidate

verb

/ˈlɪk wɪˌdeɪt/

IPA:

Dictionary definition of liquidate

To convert assets, typically in the form of property, investments, or inventory, into cash or cash equivalents.
"They had to liquidate their investments to fund their new business venture."

Detailed meaning of liquidate

When someone or a business liquidates their assets, they sell or dispose of them to settle debts, meet financial obligations, or wind down operations. Liquidation can occur voluntarily, such as when a company or individual decides to close down and sell off their assets, or involuntarily, when a court or financial institution mandates the process to satisfy outstanding debts. The goal of liquidation is to convert assets into a liquid form that can be easily distributed or used to repay creditors or shareholders. This involves selling assets at fair market value or through auctions, with the proceeds going towards settling obligations. Liquidation can be a result of bankruptcy, insolvency, or simply a strategic decision to dissolve a business or restructure finances. Overall, the verb "liquidate" signifies the act of converting assets into cash or its equivalent through the process of sale or disposal to satisfy financial obligations.

Example sentences containing liquidate

1. The company had to liquidate its remaining inventory to cover its outstanding debts.
2. The bankrupt business decided to liquidate its assets and close down.
3. The court ordered the company to liquidate its assets to compensate its creditors.
4. The collector decided to liquidate his stamp collection to raise funds for a charitable cause.
5. The estate executor had to liquidate the deceased's property to distribute the inheritance.
6. The store announced a massive sale to liquidate its excess stock before closing for renovations.

History and etymology of liquidate

The verb 'liquidate' has its roots in Latin. It is derived from the Latin word 'liquidare,' which means 'to make clear' or 'to dissolve.' This Latin term is a combination of 'liquere,' meaning 'to be liquid' or 'to flow,' and the suffix '-ate,' which signifies the action or process of doing something. When 'liquidare' was adopted into English, it retained its sense of transforming something into a more fluid or clear state. Over time, it came to be associated with the process of converting assets, such as property, investments, or inventory, into cash or cash equivalents, essentially dissolving or clearing them. This etymology illustrates the financial aspect of the term, emphasizing the conversion of assets into a more fluid form, ready for distribution or settlement.

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Further usage examples of liquidate

1. The struggling retailer had no choice but to liquidate its stores and lay off employees.
2. The investors were forced to liquidate their holdings due to a sudden market downturn.
3. The company liquidated its subsidiary to focus on its core business.
4. The antique dealer decided to liquidate his shop and retire after decades in the business.
5. The court-appointed trustee was responsible for liquidating the assets of the fraudulent scheme.
6. The company had to liquidate its assets to cover its debts.
7. He decided to liquidate his stock portfolio and invest elsewhere.
8. They had to liquidate their savings to pay for medical bills.
9. The bankruptcy court ordered them to liquidate their business.
10. The estate executor will liquidate the deceased's assets.
11. The decision to liquidate the real estate investment was difficult.
12. She chose to liquidate her antique collection to downsize.
13. The business faced financial troubles and had to liquidate.
14. The bank threatened to liquidate the mortgage on their home.
15. Investors panicked and started to liquidate their holdings.
16. The family had to liquidate the inherited property.
17. The market crash forced many to liquidate their investments.
18. The decision to liquidate the failing division was inevitable.
19. They opted to liquidate the business rather than restructure.
20. The CEO had to liquidate some assets to raise capital.
21. He decided to liquidate the old inventory at a discount.
22. The struggling retailer had to liquidate its excess stock.
23. The entrepreneur needed to liquidate his startup to cut losses.
24. The court appointed a trustee to liquidate the bankrupt company.
25. They reluctantly agreed to liquidate their vacation property.