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
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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.
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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.
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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.
illiquidity noun [U]
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The illiquidity of these securities may negatively affect our ability to sell them.
Financial and business terms. 2012.