illiquidity


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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.

illiquidity

(1) The condition of having insufficient cash to meet anticipated requirements,such as a business loan that is turned down because of the borrower's illiquidity, not because of problems with the borrower's credit rating or the value of the collateral. (2) The relative ease with which an asset can be converted to cash.The more difficult,the more illiquid the asset is.

References in periodicals archive ?
So as much as we're having a discussion on the fundamental specifics of a particular issue or issuer, we're also talking much more with our traders about understanding the liquidity profile of that security, and making a real cognizant decision about how much we need to get paid to compensate us for that illiquidity.
Better than government bonds, but far less attractive than many other asset classes, particularly when adjusted for the illiquidity factor.
Then, we estimate the impact of market illiquidity on this association.
The Impact of Income Taxes on the Illiquidity Premium when
It is also equal to the net value of the illiquidity and inflation risk premiums associated with each TIPS issue.
To compensate an investor for this illiquidity, PIPEs are typically sold at a discounted price and also may offer attractive incentives like dividends, include certain clauses that mitigate risk (which other investors don't have) or offer downside protection on the principal.
Due to both their size and private ownership, suppliers pay an illiquidity premium, raising their cost of capital and thereby increasing the requirement to make higher profits in order to continue to fund their growth.
Illiquidity closed strongly under Jon Court, then held off the favourite License Fee in the final furlong to win the Grade 3 Cardinal Handicap at Churchill Downs.
Illiquidity, not insolvency, exacerbated by a central bank out to lunch.
Besides institutional inertia, difficulties facing Internet trading include illiquidity, meaning that a given fixed-income security is bought and sold much less frequently than a typical stock.
Stressing the role of domestic banks, the authors argue that international illiquidity is what the very diverse recent crises in emerging markets have in common.
Their estimates simply did not make adequate allowance for the extreme volatility and illiquidity of financial markets that surfaced in August and September.