Liquidating a mutual fund

It's simple to invest regularly in a stock fund.

Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Liquidating a position may simply mean selling stock or bonds; the seller in this case receives the cash.

By contrast, stock fund managers and analysts wake up each morning dedicating their professional lives to researching and analyzing current and potential holdings for their stock fund.

Whether you plan to buy stock funds or you plan to buy individual stocks, you should become familiar with the basics and how they work.

Simply put, a stock fund is a type of mutual fund that invests primarily in individual stocks of publicly-traded companies.

Early 2001 witnessed the end of the line for Tennessee-based retailer Service Merchandise, a 42-year-old chain of catalog showrooms that proved unable to compete with large discounters such as Wal-Mart.

Following a three-year attempt at reorganization under Chapter 11 bankruptcy, the firm announced it would close all 216 stores and liquidate its inventories and real estate.