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Probably the most common form of stock liquidation is one you can initiate yourself.

In the parlance of the industry, liquidating a stock is simply selling it.

If a company files a Chapter 7 liquidation bankruptcy, the company essentially vanishes from existence.

If you call your broker and tell him you want to liquidate a stock you own, he will enter a sell order for you.

If you tell him to liquidate your portfolio, he will sell everything you own.

All assets are sold, with the proceeds paid out to creditors.

Individual stockholders generally receive nothing in a corporate liquidation.

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