marketability risk

Liquidity Risk

The risk that an individual or firm will have difficulty selling an asset without incurring a loss. That is, there may be a lack of interest in the market for a particular asset, forcing the owner to sell it for less than its actual value. Liquidity risk may be quantified as the difference between an asset's value and the price at which it can likely be sold. It is highest for lightly traded securities and small issues, as well as during a bear market.

marketability risk

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Marketability risk: The secondary market for debt is not fully developed in India.
* Marketability risk, or the risk that there will be no ready market for your investment if you want to sell it in a hurry.
For example, Fisher |12~ was the first to explain yields on fixed-income securities in terms of three major characteristics: (i) the risk of default; (ii) sensitivity to interest rate changes, i.e., interest rate risk; and (iii) the risk that the holder will be unable to sell the instrument (marketability risk).
We then model default risk, along with marketability risk and other characteristics on yield spreads using a factor analytic technique (LISREL).
Our empirical results indicate that both marketability risk and default risk are important in explaining yield spreads for high-yield bonds.
We examine the influence of default risk, marketability risk and convertibility to explain yield spreads for high-yield bonds.
In addition, we find evidence that investors demand compensation for marketability risk, as measured by the volatility of bond prices and trading frequency.
Resultantly, market reluctance occurs due to perceived liability, insurability and marketability risks (Bartke, 2010).
LITERATURE REVIEW ON THE ASSESSMENT OF MARKETABILITY RISKS
In the last decade, controversial discussions increasingly focused on enhancing the appraisers' capabilities to assess marketability risks through methodologies such as sample surveys and market interviews (e.g.
Stigma and marketability risks: Even if all authority requirements for use and private claims are met, properties with a history of contamination will still have a battered image.
The rating is limited by project execution and marketability risks related to the firm's real estate projects, the service said.