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 ?
Therefore, it would be interesting to verify not only the relationship between market liquidity and market risk/ expected return and between accounting liquidity and accounting return, but also cross-relationships between the four indicators.
Market liquidity is important for the functioning of financial markets, helping to facilitate the efficient distribution of resources through the allocation of capital and risk.
During the forum, Ken Bentsen, president and CEO of SIFMA, noted a recent PwC analysis that looks at the state of market liquidity.
They then construct an empirical asset pricing model that includes liquidity risk by extending the Fama and French (1993) three-factor model to include a market liquidity factor:
Depending on the realization of the customer demand D, the spot price [p.sub.s], the market liquidity m, and the suppliers' supply risk [r.sub.i]'s , the buyer should decide the exercise quantity from each of these suppliers and the spot market to satisfy the demand.
The regulatory treatment of ABSs, in particular the proposed regulatory capital charges for banks and insurers, could be a factor, as could a lack of secondary market liquidity and the relative opacity of the loans packaged in an ABS.
Securities and Exchange Commission (SEC), the regulatory arm of the Colombo Stock Exchange (CSE), is studying new policies aimed at improving corporate governance, market liquidity and creating a better informed investor base, according to its Chairman Thilak Karunaratne.
With the RBI going for CRR cut to improve market liquidity and reducing repo rates by 50 basis points, we expect the market to improve in the coming months."
So far, it's been about creating market liquidity through short bursts of product and services promotions.
SIFMA's primary concern is the potential negative impact of the proposed rule on market liquidity. She notes that "lack of market liquidity could directly hamper FEI members' [companies'] ability to access the capital markets, for both debt and equity."
To explore the full development potential within member states, the CEER invites the national regulatory authorities (NRAs) to propose measures on how to improve market liquidity and the degree of market integration.
HIGH market liquidity gives you an everyday chance to practice scalping - a series of small profitable trades.