In the business world of high finance, liquidation has two meanings. The first is simply converting securities into cash. The second is the sale of the assets of a company to one or more acquirers in order to pay off debts. In the event that a corporation is liquidated, the claims of secured and unsecured creditors and owners of bonds and preferred stock, take precedence over the claims of those who own common stock.
NetLingo Classification: Online Business
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