Liquidate

  

Categories: Trading

To sell. Perchance to not lose everything in the process.

Liquidate usually means "sell with extreme prejudice." It's what happens when that furniture store goes out of business. Those 187 couches must be sold by Sunday night when the store's lease somehow evaporates. So the price is no longer $2,800 for the yellow leather thing; it's now liquidated for $500.

Liquidation time often equals bargain time.

Related or Semi-related Video

Finance: What is an Auction Market?13 Views

00:00

Finance a la shmoop... what is an auction market.. next up on the block [Man speaking on stage]

00:07

we've got stock in the company comb Depot....

00:18

okay yeah so the New York

00:20

Stock Exchange is an auction market and you have no idea how much caffeine I had [Man holding a monster energy drink]

00:24

to have to get that right which means that the prices on the new york stock

00:28

exchange happen during a bidding process we're matching offers get you know [People frantically rushing to bid for stocks]

00:34

matched... buyers and sellers buy and sell at the

00:40

same time so in essence two transactions are happening at once the opposite of

00:45

this sort of market is the over the counter or OTC market where dealers are

00:50

the ones holding all the cards and they ultimately determine the price by [Dealer with the cards]

00:54

creating a spread from where they're willing to sell your shares and what

00:58

price they'll pay to buy your shares but in an OTC market well you don't get to [Dogs running side by side]

01:03

feel like you're watching the last leg of a greyhound race so you don't get all

01:06

my caffeinated auction talk there which is kind of cool we like that, right..right?

Up Next

Finance: What is a Dutch Auction?
3 Views

What is a Dutch Auction? A Dutch Auction is either one where closed quantity and price bids are entered and the price is set at the highest price t...

Find other enlightening terms in Shmoop Finance Genius Bar(f)