What are liquidations?

In finance, to liquidate an asset is to sell it in return for money. A company can also be liquidated when it’s unable to pay its debts and all its contents are sold. 

When investors refer to the liquidity of an asset, they are referring to how quickly it can be sold for cash. Property is not a very liquid asset as it usually takes a long time for the sale to be finalised, while company stocks and cryptocurrencies are very liquid as they can be sold almost instantly. 

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