Illiquid

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Related to Market liquidity: liquid assets

Illiquid

In the context of corporate finance, the absence of cash flow needed to fulfill financial debts and meet obligations. In the context of investments, describes a thinly traded investment such as a stock or bond that is not easily converted into cash. Illiquid securities have high transactions costs. Often the bid-ask spread is very wide.

Illiquid

Describing 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.

illiquid

1. Of or relating to an asset that is difficult to buy or sell in a short period of time without its price being affected. For example, a large block of stock or a small amount of an infrequently traded stock is likely to be difficult to sell without a reduced price being offered to potential buyers. Compare liquid.
2. Of, relating to, or being an investment position in which a low proportion of assets is in cash or near-cash, thereby creating difficulty for the investor who is trying to raise funds for another purpose.
References in periodicals archive ?
He added, "QuotePx offers dealers and investors the option of streamlining their current OTC trading protocols in a secure digital environment, profitably sourcing sustainable market liquidity and materially lowering their trading costs".
The report downgrades Qatar from Positive to Neutral for the rest of 2012 owing to its declined market liquidity and lower earnings growth potential.
Indeed," Wechsler said, "without stabilized asset values and sufficient market liquidity, real estate will remain a drag on the entire economy.
The Impact of Inter-Dealer Trading on Market Liquidity under Asymmetric Information.
Since 2004, YJS has fostered weather derivatives market liquidity by helping dealers more quickly spot, evaluate and negotiate trading opportunities and by providing brokers with tools to facilitate more transactions.
ACB and NASDAQ launched the index in December 2003, to bring greater visibility to community banks, and in turn, promote greater market liquidity and fairer valuations.
ACB and NASDAQ launched the index in December 2003 to bring greater visibility to community banks, and in turn, promote greater market liquidity and fairer valuations.
However, the state has the option to extend the maturity to 270 days from the original issuance date in the event of a loss of market liquidity and, accordingly, there is no liquidity provider.