Liquidity event

In corporate finance, a liquidity event is the merger, purchase or sale of a corporation or an initial public offering.[1] A liquidity event is a typical exit strategy of a company, since the liquidity event typically converts the ownership equity held by a company's founders and investors into cash.

A liquidity event is not to be confused with the liquidation of a company, in which the company's business is discontinued.

External links

References

  1. Bruce Kelly (July 16, 2014). "Liquidity events heating up REIT market this summer". Investment News. Retrieved January 11, 2015.

Category:Corporate finance]]

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