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verb

liquidate

/ˈlɪkwɪdeɪt/  ·  say it: LIK·wuh·dayt

to convert assets into cash, often to pay debts

In Banking & Finance

In more detail

1. (verb) to close a business and sell its assets to pay debts

2. (verb) to convert assets into cash

3. (verb) to eliminate or get rid of something completely

Examples

How to use liquidate

Liquidate is used primarily in financial and business contexts to describe converting assets to cash or closing a business entity. It is formal and technical when referring to financial matters, but can also appear in more general contexts meaning to eliminate or dispose of something. The third sense (eliminate) is more informal and carries a euphemistic tone.

Register: formal

Common phrases

Synonyms

wind up · dissolve · settle · convert to cash · eliminate

Opposites

establish · found · create

Word family

liquidation (noun) · liquidator (noun) · liquid (adjective)

A common mistake

Learners sometimes confuse liquidate with liquidize (to blend or make liquid); these are distinct words with different meanings and contexts.

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