| Liquidation | |
 1. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. 2. Any transaction that offsets or closes out a long or short position. |
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 Creditors liquidate assets to try and get as much of the money owed to them as possible. They have first priority to whatever is sold off. After creditors are paid, the shareholders get whatever is left with preferred shareholders having preference over common shareholders. |
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 An Overview Of Corporate Bankruptcy - As soon as you invest in a company, you face this risk. Find out what it means. What are the differences between chapter 7 and chapter 11 bankruptcy? |
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