liquidity-events

Vocabulary Word

Definition

'Liquidity events' are occasions when an investment can be converted into cash. This could be when a company you've invested in is bought by another company or goes public.

Examples in Different Contexts

In business transactions, 'liquidity events' are significant activities that enable a company's shareholders to sell their equity, such as mergers, acquisitions, or IPOs. A business analyst might state, 'Tracking upcoming liquidity events gives us insights into market trends and potential investment opportunities.'

Practice Scenarios

Startup

Scenario:

The tech startup we've invested in shows great potential. It could be a game-changer for our fund if they continue to perform well.

Response:

I agree. As a significant liquidity event, an acquisition or merger could exponentially increase the value of our fund.

Business

Scenario:

We've made some strategic investments in promising startups. We're closely monitoring their progress for any impending exits.

Response:

Yes, tracking our strategic investments is necessary. In case of any possible liquidity events, we would want to swiftly capitalize on them.