Liquidating Market

A type of securities market in which there is broad-based selling of most securities at the same time, giving the effect of low and decreasing prices on most securities while selling volumes remain high. A liquidating market is one in which the majority of investors are leaving or selling off their securities traded in that market, so that overall there is a general liquidation of securities in that market.

A liquidating market can occur for pretty much any type of security if the right conditions develop. For example, consider a housing bubble, in which real estate prices are continually bid up pretty much across the board. Once the bubble bursts, investors stop buying into real estate and begin selling their holdings.

This creates the aggregate effect of a sell-off in the real estate market as a whole, which would display relatively low prices on houses and strong selling pressure. In this case, the real estate market would be said to be a liquidating market, as most of the market's participants are chiefly interested in liquidating their assets into cash at that time.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Stock market bottom — A stock market bottom is a trend reversal that marks the end of a market downturn and the beginning of an upward moving trend. A bottom may occur because of the presence of a cycle, or because of panic selling as a reaction to an adverse… …   Wikipedia

  • Money market fund — This article is about the type of mutual fund. For the type of bank deposit account, see Money market account. A money market fund (also known as money market mutual fund) is an open ended mutual fund that invests in short term debt securities… …   Wikipedia

  • РЫНОК ЛИКВИДНЫЙ — LIQUIDATING MARKETCостояние рынка, характеризующееся большими объемами продаж, вызванными либо согласованным стремлением снизить чрезмерно вздутые цены, либо традиционным стремлением к извлечению прибыли. Применительно к рынку акций продажа акций …   Энциклопедия банковского дела и финансов

  • Midway Games — For the games seen at fairs and carnivals, see Midway (fair). Midway Games, Inc. Type As of 2011, Midway is a corporation existing under Delaware law subject to a Chapter 11 bankruptcy liquidation plan. Industry …   Wikipedia

  • Dodd–Frank Wall Street Reform and Consumer Protection Act — Full title An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to fail , to protect the American taxpayer by ending bailouts, to protect consumers… …   Wikipedia

  • insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… …   Universalium

  • Net capital rule — The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ( SEC ) in 1975 to regulate directly the ability of broker dealers to meet their financial obligations to customers and other creditors.[1] Broker… …   Wikipedia

  • France — /frans, frahns/; Fr. /frddahonns/, n. 1. Anatole /ann nann tawl /, (Jacques Anatole Thibault), 1844 1924, French novelist and essayist: Nobel prize 1921. 2. a republic in W Europe. 58,470,421; 212,736 sq. mi. (550,985 sq. km). Cap.: Paris. 3.… …   Universalium

  • Margin (finance) — For the 2011 film, see Margin Call. In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their broker or an exchange). This risk can… …   Wikipedia

  • Open interest — (also known as open contracts or open commitments) refers to the total number of derivative contracts, like futures and options, that have not been settled in the immediately previous time period for a specific underlying security. A large open… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.