illiquidity
1
8.9
- noun
- /ˌɪlɪkˈwɪdəti/
- Specialized
:
iliquidez
- The illiquidity of the asset made it difficult to sell quickly without a loss in value.
- illiquidity and risk
- illiquidity and high
Examples
-
Uncertainty over the quantity and valuation of banks' "toxic assets" has meant that many cannot count on loans from each other to meet daily needs, and this illiquidity in the markets has impaired their ability to lend.
Blog text (32) -
Furthermore, the illiquidity of closely held corporate shareholders' investments complicates finding an efficient and equitable solution because it is more difficult for a court to value the shares without a market-driven fair value.
Academic text (2017) -
The principal reason for asset illiquidity is the general equilibrium aspect of asset sales.
Academic text (2017) -
In the USA, increased public debt has from time to time triggered brief illiquidity episodes for the central government.
Academic text (2018) -
The transaction costs, illiquidity, and high risk argue that households require higher discount rates than businesses for the same investment.
Academic text (1991) -
One consequence of illiquidity is that individual transaction prices may not be representative of the market participants' beliefs.
Academic text (2005) -
Other market barriers, such as illiquidity and high risk, discourage investment by consumers but not by businesses.
Academic text (1991) -
No foreign company lists directly on the ICEX, as the small size and illiquidity of the market make such a move redundant.
Blog text (3) -
It is illiquidity that causes bank collapses, and unless capital controls are sharply undermined, we are not likely to see this happen in China.
Blog text (7) -
Also, the relative illiquidity of the sukuk market could contribute to a sense that rising volatility in other markets would not affect a market where there is altogether less turnover.
Academic text (2012)
Synonyms
1
7.3
A time when people, banks, and businesses cannot get cash or loans quickly
Antonyms
How Liquid
Surface Forms
Morphology
Etymology
Illiquidity comes from the prefix il- meaning 'not' and the root liquid meaning 'to flow' or 'liquid' like water. So illiquidity is when money or assets do not 'flow' easily, and that is why they are hard to sell quickly without losing value.