Difference between Divestment and Liquidation

What is the difference between Divestment and Liquidation?

Divestment as a noun is the sale or other disposal of some kind of asset. while Liquidation as a noun is the process of converting into cash (or into an asset with high liquidity).

Divestment

Part of speech: noun

Definition: The sale or other disposal of some kind of asset.

Liquidation

Part of speech: noun

Definition: The process of converting into cash (or into an asset with high liquidity).The selling of the assets of a business as part of the process of dissolving the business.

Example sentence: The Orderly Liquidation Authority prescribed by Dodd-Frank should be repealed and replaced by an amendment to the U.S. Bankruptcy Code which would operate to prevent cross-default provisions from impacting derivatives books so long as mark-to-market payments are being made in a timely fashion.

We hope you now know whether to use Divestment or Liquidation in your sentence.

Also read

Popular Articles