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LSDefine

Simple English definitions for legal terms

liquidation price

Read a random definition: mansion-house rule

A quick definition of liquidation price:

Liquidation price: The price at which an asset is sold to pay off debts or losses. It is the minimum price at which an investor must sell their asset to avoid further losses.

A more thorough explanation:

Definition: The liquidation price is the price at which an investor's position is automatically closed out by the exchange or broker to prevent further losses.

For example, let's say an investor buys 100 shares of a stock at $50 per share, and sets a stop-loss order at $45. If the stock price drops to $45, the stop-loss order will trigger and the investor's position will be automatically sold at the current market price. The liquidation price in this case is $45.

Another example is in futures trading. If an investor buys a futures contract at a certain price and the price drops below a certain level, the exchange will automatically close out the position at the current market price to prevent further losses. The liquidation price in this case is the price at which the position is closed out.

These examples illustrate how the liquidation price is used to limit an investor's losses and prevent them from losing more money than they can afford.

liquidation preference | liquidation value

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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