Liquidity event – n : an event that enables shareholders of a privately-held company to convert their illiquid ownership shares into cash. Most typically, startups achieve liquidity for their shareholders through one of three types of liquidity events: an initial public offering (IPO); a sale of the company or its assets in an M&A transaction; or a leveraged buyout or management buyout. (see also: exit and shareholder exit)

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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