Liquidity event

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In corporate finance, a liquidity event is an umbrella term that describes one of several events, typically a purchase of a corporation or an initial public offering. A liquidity event is a typical exit strategy of a startup company, since the liquidity event typically converts the ownership equity held by a company's founders and investors into cash.

A liquidity event is not to be confused with the liquidation of a company, in which the company's business is discontinued.