General Meaning:
* To convert something into cash: This is the most common usage. It means to sell something, whether it's an asset (like a house, stock, or business) or a collection of items. The goal is to turn it into money.
* To close down a business: This is often used when a company is facing financial difficulties. It involves selling assets and paying off creditors.
Specific Examples:
* Liquidate a company: This means to shut down the company and sell off its assets to repay creditors.
* Liquidate a position: In finance, this means to sell a financial instrument (like a stock or bond) to turn it into cash.
* Liquidate an estate: This is the process of settling the financial affairs of a deceased person, including selling their assets and paying off any debts.
Important Notes:
* Liquidation doesn't always mean bankruptcy: A company can liquidate even if it's not bankrupt. Sometimes it's a strategic business decision.
* Liquidation can be forced: A creditor can force a company into liquidation if it's unable to pay its debts.
* Liquidation can be voluntary: A company can choose to liquidate if it's no longer profitable or if the owners want to retire.
In short, "liquidate" means to convert something into cash, usually by selling it. The specific meaning can vary depending on the context.