Definition, Meaning & Synonyms

liquidate

verb

/ˈlɪk.wɪ.deɪt/

Definition

To sell off assets, typically to pay debts or settle obligations.

Examples

The company had to liquidate its assets to pay off creditors.
After the business closed, they decided to liquidate the inventory at a steep discount.
During the recession, many firms were forced to liquidate due to financial struggles.

Meaning

Liquidate refers to the process of converting assets into cash, often through sale or disposal. This term is frequently used in financial contexts when a company or individual needs to pay off liabilities or is undergoing bankruptcy.