- liquidate
- to settle a debt or to convert to cash.This literally means to do away with. Glossary of Business Terms————Selling (or purchasing) futures contracts of the same delivery month purchased (or sold) during an earlier transaction or making (or taking) delivery of the cash commodity represented by the futures contract. Taking a second futures or options position opposite to the initial or opening position. Chicago Board of Trade glossary————Refers to closing an open futures position. For an open long, this would be selling the contract. For a short position, it would be buying the contract back ( short covering, or covering his short). The CENTER ONLINE Futures Glossary————To offset an existing position. Chicago Mercantile Exchange Glossary
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1. [transitive] to sell an investment for cash:• Holdings of units can be liquidated quite quickly.
2. [intransitive, transitive] if someone liquidates a company, or if the company liquidates, all of its assets are sold in order to pay its debts. Any money left after that is returned to shareholders and the company stops operating:• Rather than trying to reorganize, the airline will liquidate.
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To close or offset a long or short trading position to realize a gain or loss.* * *
liquidate UK US /ˈlɪkwɪdeɪt/ verb► [I or T] LAW, FINANCE if a business liquidates or is liquidated, it is closed so that its assets can be sold to pay its debts: »The only way for management to return value to shareholders in the short term is to liquidate the company and return the cash.
»As the customer of a brokerage that's being liquidated, you should receive a warning in the mail or see notices in the newspaper.
► [T] ACCOUNTING, FINANCE to sell something in order to get cash: »She liquidated the stock and pulled about $10,000 from savings to pay off her debt.
»In the event of a reclamation, the Fund may liquidate sufficient shares from a shareholder's account to reimburse the government or the private source.
► [T] ACCOUNTING, FINANCE to pay off a debt: »They were required to liquidate the debt within 30 days of the date due.
Financial and business terms. 2012.