An asset that is not performing well in the markets may also be partially or fully liquidated to minimize or avoid losses.
An investor who needs cash to fulfill other non-investment obligations, such as bill payments, vacation expenses, car purchase, tuition fees, etc. Financial advisors tasked with allocating assets to a portfolio usually consider, among other factors, why the investor wants to invest a certain amount of money and for how long s/he would like to invest for.
The shareholders appoint a liquidator who dissolves the company by collecting the assets of the solvent company, liquidating the assets, and distributing the proceeds to employees who are owed wages and to creditors in order of priority.
The trustee handles the liquidation and determines which creditors are paid first.
The last step in the effort to repay debt in bankruptcy is usually to liquidate everything.
This usually happens when shareholders believe that the company is no longer sustainable or profitable.
Therefore, liquidating dividends are considered a return of shareholders' investments, rather than profit on them.
An investor that is long a stock may decide to sell some or all of the shares held in his portfolio for cash.