Capital liquidating

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An investor that is long a stock may decide to sell some or all of the shares held in his portfolio for cash.

Once the process is complete, the business is dissolved.An asset that is not performing well in the markets may also be partially or fully liquidated to minimize or avoid losses.An investor who needs cash to fulfill other non-investment obligations, such as bill payments, vacation expenses, car purchase, tuition fees, etc. Financial advisors tasked with allocating assets to a portfolio usually consider, among other factors, why the investor wants to invest a certain amount of money and for how long s/he would like to invest for.A portfolio comprised of stocks and bonds for an investor whose objective is to purchase a home five years from now, may have these securities liquidated in five years.The cash proceeds would then be used to make a down payment for a home.These lenders will seize the collateral and sell it—often at a significant discount, due to the short time frames involved.

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