Illiquid Asset

(redirected from Illiquid Investment)
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Related to Illiquid Investment: Illiquid Asset, Liquid Markets

Illiquid Asset

An asset that is difficult to sell because of its expense, lack of interested buyers, or some other reason. Examples of illiquid assets include real estate, stocks with low trading volume, or collectibles. Illiquid assets still have value and, in many cases, very high value, but are simply difficult to sell. See also: Liquid.
References in periodicals archive ?
First, illiquid investments limit investors' ability to adjust their portfolios in response to early warnings of an increase in systemic risk.
Webb (8) investigated the effect of marketability on market value and analyzed the problem that an owner of an illiquid investment faces.
Further, a taxpayer who invests funds in speculative or illiquid assets has not exercised ordinary business care and prudence in providing for the payment of his tax liability unless, at the time of the investment, the remainder of the taxpayer's assets and estimated income will be sufficient to pay his tax or it can be reasonably foreseen that the speculative or illiquid investment made by the taxpayer can be used (by sale or as security for a loan) to realize sufficient funds to satisfy the tax liability.
But retail investors should realise that chasing a higher yield by investing in these products could mean winding up with an expensive, risky, complex and illiquid investment.
The idea of the fund is to allow investors to transform an otherwise illiquid investment to a liquid, professionally managed and diversified investment portfolio resulting in enhanced attractiveness to passive investors and finance providers.
Levine led McGladrey's Great Lakes business valuation practice and has been frequently quoted in the business press on illiquid investment and financial instrument valuation matters.
Peter's experience in loan origination and direct lending will play an instrumental role in our vision to identify and source more illiquid investment opportunities in the U.
But retail investors should realize that chasing a higher yield by investing in these products could mean winding up with an expensive, risky, complex and illiquid investment.
The illiquid investment firm's opportunities fund creates value for investors by applying a disciplined diligence process, risk-mitigating transaction structures, and a wide sourcing network in less efficient markets.
Nobody likes to hear that their biggest, most illiquid investment may not go on to provide the return they hoped.
In funding its acquisition of Rydex, Fitch believes that a large portion of these liquid investments were replaced by a highly illiquid investment in an asset management firm, with the company's remaining investment portfolio heavily exposed to worsening conditions in the market for structured securities backed by subprime collateral.