illiquid


illiquid
In the context of finance. absence of cash flow needed to fulfill financial debts and meet obligations. In the context of investments, describes a lightly traded investment such as a stock or bond that is not easily converted into cash. Bloomberg Financial Dictionary

* * *

illiquid il‧liq‧uid [ɪˈlɪkwd] adjective FINANCE
involving things that cannot easily be changed into cash, or things that are difficult to buy and sell:

• real estate and other illiquid assets

• Because bank loans are typically illiquid, they are difficult for outsiders to value.

— opposite liquid
— illiquidity noun [uncountable] :

• The drawback is that small shares may be difficult to sell because of illiquidity.

* * *

   Markets or instruments are described as being illiquid, or lacking depth, if there is a shortage of buyers or sellers. This shortage makes it difficult to find a true price for an illiquid security. The opposite of liquid.
   ► See also Liquidity.

* * *

illiquid UK US /ɪˈlɪkwɪd/ adjective FINANCE
used to describe an asset that is not easy to sell and exchange for cash: »

Her investment is illiquid: it would take time to sell the properties in order to raise cash and release capital.

Compare LIQUID(Cf. ↑liquid)
illiquidity noun [U]
»

The illiquidity of these securities may negatively affect our ability to sell them.


Financial and business terms. 2012.

Look at other dictionaries:

  • illiquid — illiquid:⇨zahlungsunfähig(1) illiquid→zahlungsunfähig …   Das Wörterbuch der Synonyme

  • Illiquid — (v. lat.), 1) nicht flüssig; 2) unklar, unberichtigt …   Pierer's Universal-Lexikon

  • Illiquīd — (neulat.), nicht flüssig; in der Rechtssprache soviel wie nicht fällig, unerwiesen, im Gegensatz zu liquid (s. d.) …   Meyers Großes Konversations-Lexikon

  • Illiquid — Illiquid, lat. deutsch, nicht flüssig; unklar, unerwiesen …   Herders Conversations-Lexikon

  • illiquid — USA Unable to be easily bought or sold in the market and therefore not easily converted into cash. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • illiquid — (adj.) 1690s, from IL (Cf. il ) not + LIQUID (Cf. liquid) in the financial sense …   Etymology dictionary

  • illiquid — [i lik′wid] adj. [< IN 2 + LIQUID] 1. not readily convertible into cash 2. characterized by an insufficiency of cash illiquidity [il΄i kwid′i tē] n …   English World dictionary

  • Illiquid — The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets also cannot be sold quickly because of a lack of ready and willing investors or speculators to purchase… …   Investment dictionary

  • illiquid — adjective Date: 1913 1. not being cash or readily convertible into cash < illiquid holdings > 2. deficient in liquid assets < an illiquid bank > • illiquidity noun …   New Collegiate Dictionary

  • illiquid — adjective lacking liquidity Investment in illiquid assets may prove to be a mistake if the market turns down. Ant: liquid …   Wiktionary