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illiquid

illiquid

2 8.9
An asset that is hard to sell quickly without losing much value
  • adjective
  • /ɪˈlɪkwɪd/
  • Specialized
translation icon : ilíquido
  • Unlike liquid investments in public corporations, closely held corporations have illiquid investments that shareholders cannot easily sell to other investors.
  • illiquid investments

His aggressive buying pushed the price back up from the lows, but he found himself stuck in a large and illiquid trade.

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Examples

  • We all should be mini corporations that hold physical, illiquid assets.

    Blog text (8)
  • Finally, this particular ETF is too illiquid to attract any interest from the HFTs of this world.

    Blog text (15)
  • Eventually, some forward products were developed, but they failed to generate much interest, and the market remained very illiquid.

    Academic text (2001)
  • One is a financial obligation; the other is an illiquid asset.

    Blog text (19)
  • So often when it's on a very illiquid underline, it's very difficult for anyone to know what the fee is and often it's high.

  • The fact that CDOs became illiquid in a flight to safety isn't a mystery.

    Blog text (23)
  • We see this in the bond markets where illiquid off the run bonds typically have a higher yield than the more liquid on the run bonds.

  • The difficulty in valuing an illiquid investment complicates the creation of uniform law.

    Academic text (2017)
  • Household investments in a building shell, such as insulation or storm windows, have high transaction costs; they are illiquid, with essentially no marketability, and the payoff is risky.

    Academic text (1991)
  • Investing in real estate can be risky, as properties are often illiquid and hard to sell quickly without losing value.

Synonyms

untradeable
vsilliquid
1 6.0

People cannot buy, sell, or exchange it

is difficult to sell or convert without losing value
unexchangeable
vsilliquid
1 7.3

You cannot return or change it after you buy it

is about difficulty converting or selling without losing value
nonliquid
vsilliquid
6.4

Not a liquid or not easy to sell quickly for cash

is about assets hard to sell without losing value
untradable
vsilliquid
  • Specialized
5.7

You cannot buy or sell it in a market

is difficult to sell or convert without losing value
unconvertible
vsilliquid
  • Specialized
8.6

You cannot exchange it for another currency or asset

is about difficulty converting or selling without losing value
inconvertible
vsilliquid
  • Specialized
9.9

You cannot exchange it for another currency

is about difficulty converting or selling without losing value
unsalable
vsilliquid
6.5

A thing too damaged or unwanted for people to buy

is about difficulty selling without accepting a loss
unvendible
vsilliquid
9.9

Not fit to sell because it is damaged or spoiled

is about difficulty selling without accepting a loss

Antonyms

liquid
  • Specialized
30 4.2

Easy to turn into cash for use

How Liquid

liquid
  • Specialized
30 4.2
marketable
25 3.8
illiquid
  • Specialized
2 8.9
unmarketable
1 6.1

Surface Forms

illiquid positive

Morphology

illiquid = liquid (transparent) = il + liquid

Direct negative prefixation (in- → il- before l) from the adjective 'liquid', so meaning is simply 'not liquid' in the financial sense.

Etymology

The word illiquid is made from the negative part il- meaning 'not' and liquid meaning 'flowing' or 'like water'. So an illiquid asset or market is one that does not 'flow' into cash easily and cannot be sold quickly without losing value.