The term "sold-off" describes the act of disposing of assets, shares, or goods, often in a hurried manner, typically due to financial distress, strategic restructuring, or a decline in market value. It signifies a rapid and sometimes discounted sale, aiming to quickly convert assets into cash. This action can significantly impact the valuation of the item being sold and the overall financial health of the seller. The impetus is often driven by debt management, avoiding further losses, or raising capital.
Sold-off meaning with examples
- Faced with crippling debts, the company was forced to Sold-off its subsidiary in a fire sale to avoid bankruptcy. The swift sale, though at a loss, helped to secure vital funds and keep the main business afloat, but it came at a great cost to stakeholders and staff.
- The stock market crashed, causing investors to Sold-off their holdings in panic, leading to a further decline in share prices. This rush to sell triggered a downward spiral, impacting both individual portfolios and broader financial markets.
- Following a change in strategic direction, the corporation decided to Sold-off its non-core assets, streamlining its operations. This strategic shift allowed them to focus on their most profitable areas and redirect capital towards growth.
- Due to the economic downturn, the government Sold-off its state-owned enterprises to raise funds and reduce public debt. While controversial, the initiative sought to inject liquidity into the economy during a turbulent time for the entire world.
- Rumors of an upcoming merger prompted a Sold-off of shares by insiders who had access to inside information before the merger was announced. This action raised ethical concerns about trading in advance of a merger and hurt the average shareholder.