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🌍 US & Europe · Exits & dealsLiquidity event
Also called: liquidity, exit event
In one line
Any event that lets shareholders turn their shares into cash — most often an IPO, an acquisition or a company-run tender offer.
In plain English
Private shares are stuck until something lets you sell. A liquidity event is that 'something': the company goes public, gets bought, or opens a secondary window.
If you were explaining it to a 5-year-old
The toy shop that was always shut finally opens its doors — now you can actually sell your toys for coins.
Why it matters when you sell
Waiting for a liquidity event is the default path, but it can be years away or never come — which is exactly why employees look at secondaries.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.