Liquidation is a painful word for me. In the financial world, it essentially means the death of a business and the distribution of its remains to creditors. I myself have been in such a situation when our company simply could not pay its debts, and everything went under the knife.

###History of Liquidation: It Has Not Always Been a Catastrophe

Liquidation has existed for centuries, but before it was simply a mark of shame. Now some clever folks have managed to turn it into a "strategic business option." Honestly, it sounds like a fancy name for a company graveyard. This whole "evolution of the concept" is just an attempt by bankers and financiers to give a noble appearance to the process of dismembering a company's corpse.

###Voluntary or involuntary — what’s the difference?

There are two types of liquidation: voluntary ( when the directors decide to nail the lid on the coffin) themselves and forced — when creditors come with pitchforks and torches demanding what is theirs. In both cases, a liquidator is appointed — something like an undertaker for the business, who ensures that everyone gets their share.

###How liquidation hits the markets

When a large company goes under, it's like a stone in a pond. The waves spread throughout the market. Technology startups suffer the most. They are picked apart by larger predators, snatching up patents and technologies. Some call it "stimulating innovation." I call it a vulture feast.

###Modern Trends: Bankruptcy Happens More Often

Recently, more and more companies are going off the rails. Instability in the world, unpredictable crises — all this leads to businesses closing one after another. The technology sector is especially vulnerable — either adapt or die. This is the harsh reality.

###Liquidation on trading platforms

On cryptocurrency exchanges, liquidation has a different face — it is when your position is forcibly closed due to a lack of margin. You barely have time to blink, and the trading platform has already wiped your position to "protect" you from significant losses. In reality — to protect itself from your debts.

Liquidation is an unpleasant but necessary mechanism of the financial world. It redistributes resources, deals with debts, and maintains some order. But behind every liquidation are real people, lost jobs, and shattered dreams. Remember this the next time you hear about a "strategic reorganization" of some company.