Illiquid

Related to Illiquid: Illiquid Market, Illiquid 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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive ?

LiquidX is the global network for illiquid assets, providing an efficient and flexible platform for participants to transact across the trade finance, working capital and trade credit insurance asset classes.

LiquidX Partners with DBS, Leading Asian Bank; Expands Singapore Office

The FCA revealed that at one stage the equity income fund had around 20% invested in illiquid assets - those that are hard to trade, sell or value.

City watchdog launches investigation into suspended Woodford fund

SEBI conducted an investigation into the trading activity in illiquid stock options on BSE from April 2014 to September 2015 after observing a large-scale reversal of trades in the bourse's stock options segment.

SEBI slaps over Rs 27 lakh fine on 5 entities

He stressed the need for institutions to have sound ethics, stating that the Botswana equity market was unique because it was small and illiquid.

Institutional strength key to success

Upon analysis of the trading activity of these entities, it was observed that the scheme, plan, device and artifice employed in executing reversal trades in illiquid stock option contracts at irrational, unrealistic and unreasonable prices, was prima-facie a fraud on the securities market in as much as it involved non-genuine/manipulative transactions in securities and misuse of the securities market.

SEBI to initiate action against 14,720 entities for 'non-genuine trades'

Due to illiquid nature of these stocks, their impact cost and price volatility is usually higher, it said.

PSX mulls new counter for trading of less liquid stocks

And Prudential Private Placement Investors managed $81 billion in illiquid credit.

Institutional Investors' Allocations to Alts Gather Steam

Researchers found that participants chose to allocate between 39% and 56% of their money to a Commitment Account depending on what type of illiquid condition was placed on it.

Most Americans Don't Trust Themselves With Their Own Money

Illiquid credit is a further method for institutional investors to diversify return drivers and improve overall portfolio effectiveness, whilst also adhering to a low risk yet return seeking profile."

Investors go alternative

Global Banking News-July 7, 2016--Houlihan Lokey hires MDs for illiquid European assets

Houlihan Lokey hires MDs for illiquid European assets

New Delhi: To safeguard investor interest, stock exchanges NSE and BSE have advised members to take extra caution while trading in more than 400 illiquid stocks.