Definition
A corporate action where shareholders finally get to convert their paper wealth into actual money—or discover their shares are worthless after preferences. It's payday or apocalypse, with no middle ground.
Example Usage
The acquisition was technically a liquidation event, but after the preferences paid out, common stockholders got approximately nothing.
Origin
Corporate finance and securities law terminology, formalized in venture capital deal structures.
Fun Fact
Multiple liquidation preferences can mean investors get paid multiple times their investment before common shareholders see a dime, making early equity grants potentially worthless.
Source: Corporate finance and securities law
Related Terms
Translate This Term
See “liquidation event” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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