Corporate Actions

Liquidation

Definition

What is Liquidation?

The process of selling an entity's assets, paying creditors, and distributing any remainder to owners.

Example in practice

Shareholders receive value only after creditors are paid during liquidation.

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An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

An issue of additional shares to existing shareholders without a cash payment.

An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.

A vote cast by another person or electronically on behalf of a shareholder.

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