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liquidate investment & finance definition
- To sell all of a business’s assets and close down the business. An involuntary liquidation is called a Chapter 7 bankruptcy.
- To close a brokerage account and sell its stocks and investments.
- To close open futures and options positions. If futures are owned, an equivalent amount is sold to liquidate a position. If futures have been sold short, then the equivalent position is bought to liquidate a position.
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