The Staff’s underlying rationale in granting relief to liquidating trusts appears to be two-fold: (1) that compliance with the reporting obligations (including the cost of auditing annual financial statements and preparing and filing quarterly reports) of the Exchange Act would place an unreasonable financial and administrative burden on a liquidating trust and significantly reduce the amount of distributions to be made in respect of the beneficial interests; and (2) as the beneficial interests are not and will not be traded on the open market and the holders of the beneficial interests will receive at least annual financial reports from the trustee of the liquidating trust, there is no need for the general public to receive the type of information regarding the liquidating trust required under Sections 13 and 15(d) of the Exchange Act.: In bankruptcy proceedings, there are still securities laws considerations.A buyout occurs when another entity, usually a corporation, offers to buy all of a company's stock.To induce investors to sell, buyout prices are typically higher, and sometimes substantially higher, than the current market price.However, even in Chapter 11 bankruptcy, most stocks end up worthless.The best way for a stock to get liquidated, in most investors' eyes, would be when a stock is bought out.
There has been a high volume of bankruptcy filings over the last three years of the economic downturn and they do not show any signs of letting up.
In the parlance of the industry, liquidating a stock is simply selling it.
If you call your broker and tell him you want to liquidate a stock you own, he will enter a sell order for you.
On an individual basis, your personal stock may be subject to liquidation if you bought it on margin.
Margin is the process of borrowing money from a firm to purchase stock or other securities.