Liquidation typically occurs when a limited company has reached a point where, for one reason or another, it has been decided that the business will not continue.In this case, you might consider liquidating your company; which basically means turning your assets into cash.Stock shares trade down sharply in value until they are ultimately "delisted" and removed from the stock exchange.Corporate stock in a liquidation bankruptcy is ultimately worthless, since it represents ownership in a company with no assets that no longer functions as a going concern.
Choosing liquidation converts the business assets to cash, which is then used to make these payments.
As applied to a company, (or sometimes to the affairs of an individual,) liquidation is used in a broad sense as equivalent to "winding up;" that is, the comprehensive process of settling accounts, ascertaining and adjusting debts, collecting assets, and paying off claims.
A partnership starts with an agreement between two or more people who want to go into business together.
As an individual, you can liquidate stock by selling it in your portfolio.
If a company files a Chapter 7 liquidation bankruptcy, the company essentially vanishes from existence.