Illiquid


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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.
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References in periodicals archive ?
The Essex Pension Fund is seeking to appoint a manager for a long only predominantly illiquid debt portfolio.
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By contrast, a classification based on liquid and illiquid wealth finds economically significant differences.
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Banks depending on deposits to finance illiquid assets were more stable than those reliant on the shadow banking system for funding, said Federal Reserve governor, Jeremy Stein.
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If the prospect agrees that paying a commission to sell a stock does not make the stock illiquid, then they have to logically accept the fact that paying a fee to get money from an annuity does not make the annuity illiquid.
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investor is indifferent between holding cash or holding illiquid real
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In this economy, there are trillions of dollars in illiquid assets, and determining their value requires specialized expertise and market data," according to President Espen Robak.
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If the fund restarted now, existing investors would have a residual portfolio of increasingly illiquid stocks, plus poor prospects for new inflows into the fund, New Star says.
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The current' universally accepted practice is to borrow and apply concepts from investment-financial valuation to professional valuation-especially when valuing illiquid interests in private businesses.
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To be eligible for this relief, the illiquid asset must have been acquired under one of the following circumstances:
DOL update: changes to Voluntary Fiduciary Correction Program expands relief ability
The updated VFC Program is available to correct violations resulting from 18 types of transactions, including delinquent participant contributions, various issues with loans, purchase, sale or leaseback of assets, illiquid assets, asset valuations and compensation paid by the plan.
Current developments: this two-part article provides an overview of current developments in employee benefits, including executive compensation, welfare benefits and retirement plan requirements. Part II focuses on qualified plans and welfare benefits
Although everyone may agree that an asset is illiquid if it is difficult, costly, or time consuming to sell at a price close to its fair market value, the precise meanings of "difficult" and "fair" are not obvious in this context.
Summary of papers presented at the conference "models and monetary policy: research in the tradition of Dale Henderson, Richard Porter, and Peter Tinsley"

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