illiquid (redirected from Market liquidity)

Illiquid

An asset or security that cannot be converted into cash very quickly (or near prevailing market prices).

Notes:

A house is a good example of an illiquid asset.

See also: Cash, Liquidity

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Illiquid

In the context of finance. absence of cash flow needed to fulfill financial debts and meet obligations. In the context of investments, describes a lightly traded investment such as a stock or bond that is not easily converted into cash.

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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.