The settlement of the financial affairs of a business or individual through the sale of all assets and the distribution of the proceeds to creditors, heirs, or other parties with a legal claim.The liquidation of a corporation is not the same as its dissolution (the termination of its existence as a legal entity).Early 2001 witnessed the end of the line for Tennessee-based retailer Service Merchandise, a 42-year-old chain of catalog showrooms that proved unable to compete with large discounters such as Wal-Mart.

the process by which a JOINT-STOCK COMPANY' S existence as a legal entity ceases by the winding-up of the company Such a process can be initiated at the behest of the CREDITORS where the company is insolvent (a compulsory winding-up), or by the company directors or SHAREHOLDERS, in which case it is known as a voluntary winding-up.

The person appointed as liquidator, either by the company directors/shareholders or by the creditors, sells off the company's ASSETS for as much as they will realize.

the procedure under which a company is dissolved (or wound up).

Liquidation maybe voluntary (where the company is solvent but where the purposes for which it was set up have been achieved or no longer exist) or compulsory (usually where the company is insolvent).

If there is a surplus after payment of all creditors, this is distributed pro rata amongst the shareholders of the company.

kill, murder, remove, destroy, do in (slang), silence, eliminate, take out (slang), get rid of, wipe out (informal), dispatch, finish off, do away with, blow away (slang, chiefly U.

To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the corporation.(Convert into cash), verb cash in, change into cash, change into money, conclude, distribute assets, exchange for money, finish, realize in cash, redeem, sell, sell assets, terminate, terminate business affairs, turn into money Associated concepts: liquidated account, liquidating trust, liquidation of assets, trustees in liquidation(Determine liability), verb adjust, ascertain liability, ascertain the amount of indebtedness, ascertain the balance due, assemble and apportion assets, cancel debts, determine the amount of indebtedness, discharge, dissharge a liability, discharge debts, dispose of, extinguish innebtedness, make restitution, meet payments, pay, pay and settle, pay debts, satisfy, settle, settle accounts with the debtors and creditors Associated concepts: liquidated claim, liquidated damages, liquidated debt, liquidated demand trust, we have advised shareholders concerned about liquidity to consider selling their common shares prior to the cessation of trading," said Charles Knight, president and chief executive officer of Ameri Vest.

Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Liquidating a position may simply mean selling stock or bonds; the seller in this case receives the cash.

Liquidation usually occurs in connection with the breakup or dissolving of the company, although it can happen for various other reasons besides the termination of the business.