liquidity event

In corporate finance, a liquidity event is a transaction that enables the owners of a company to realize the value of their investment, such as a merger, acquisition or initial public offering.{{cite web|url=http://www.investmentnews.com/article/20140716/BLOG03/140719938/liquidity-events-heating-up-reit-market-this-summer|title=Liquidity events heating up REIT market this summer|author=Bruce Kelly|publisher=Investment News|accessdate=January 11, 2015|date=July 16, 2014}} A liquidity event is a typical exit strategy for private investors, who otherwise have difficulty proving the company's value.

A liquidity event is not to be confused with the liquidation of a company, in which the company's business is discontinued.

References

{{reflist}}