where did the word liquidate come from 
the term liquidate has been in use in some form or another since the 16th century and has been used in various contexts over time the word comes from the latin word liquidus which means to melt or make clear 1the term was later adopted by legal and financial professionals to refer to the process of quickly settling debts selling assets and distributing proceeds in this context liquidate refers to the conversion of assets into cash which can then be used to pay off debts or distribute to shareholders the bottom lineto liquidate is to sell assets for cash often quickly liquidation may be voluntary to increase one s cash position or remove risk or forced such as by a margin call in a brokerage account or by a bankruptcy judge in the case of insolvency the word liquidation comes from the fact that cash by definition is the most liquid asset that exists in case a company experiences chapter 7 bankruptcy its assets will be liquidated and the company will cease to exist leaving its shareholders with cents on the dollar if anything 