Liquidate Definition

In finances, to liquidate something is to sell it for cash or convert it into cash. For example, if a deceased person’s estate is liquidated all real estate and property will be sold, all savings accounts will be cashed out, outstanding debts will be satisfied insofar as possible, and any remainder passes through an inheritance mechanism. Or, if a company goes bankrupt and is liquidated, all its assets are sold, all its securities are cashed out, all its outstanding debts are paid insofar as possible, and any remainder is distributed among the shareholders.