However, in case all debts to creditors have been fully satisfied, there is a surplus left to divide among equity-holders.This mainly occurs during voluntary liquidations of solvent corporations."Stock liquidation" can have a number of different meanings -- but the common theme is that the stock is sold in exchange for money.Corporate stock as a whole can be liquidated if a company files bankruptcy, or if a company is bought out or taken over.This is usually the case in bankruptcy liquidations.Creditors are always senior to shareholders in receiving the corporation's assets upon winding up.All shareholders are entitled to the buyout price, although in some cases an investor must physically submit the stock shares to receive payment.At the conclusion of the buyout process, the target company's stock is delisted.
The best way for a stock to get liquidated, in most investors' eyes, would be when a stock is bought out.
A buyout occurs when another entity, usually a corporation, offers to buy all of a company's stock.
To induce investors to sell, buyout prices are typically higher, and sometimes substantially higher, than the current market price.
If you tell him to liquidate your portfolio, he will sell everything you own.
After receiving a Bachelor of Arts in English from UCLA, John Csiszar earned a Certified Financial Planner designation and served 18 years as an investment adviser.