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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
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.