liquidation
UK: ˌlɪkwɪˈdeɪʃən | US: ˌlɪkwɪˈdeɪʃən
n. 1. The process of winding up a company’s affairs and distributing its assets to creditors and shareholders.
n. 2. The act of converting assets into cash.
n. 3. The elimination or destruction of something, often forcefully.
The word "liquidation" stems from the Latin liquidare ("to melt, make clear"), derived from liquidus ("fluid, clear"). The root liquid reflects the idea of transforming solid assets into a "fluid" (cash) state. The suffix -ation turns the verb into a noun, emphasizing the process. Historically, it evolved from literal melting (e.g., metals) to financial contexts in the 16th century, symbolizing the dissolution of tangible or abstract entities.
The company filed for bankruptcy and began liquidation of its assets.
During the liquidation sale, all inventory was sold at discounted prices.
The dictator ordered the liquidation of political opponents.
The court appointed a trustee to oversee the liquidation process.
Investors feared the liquidation of their holdings would cause market instability.