illiquid

View more Business & Finance videos

Finance: firm that lacks sufficient Cash Flow to meet current and maturing obligations.


Investments: not readily convertible into cash, such as a stock, bond, or commodity that is not traded actively and would be difficult to sell at once without taking a large loss. Other assets for which there is not a ready market, and which therefore may take some time to sell, include real estate and collectibles such as rare stamps, coins, or antique furniture.

Previous:	Illegal Dividend, Identified Shares
Next:	Imbalance of Orders, Immediate Family

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 the asset. The lack of ready buyers also leads to larger discrepancies between the asking price (from the seller) and the bidding price (from a buyer) than would be found in an orderly market with daily trading activity.

Investopedia Says:
Some examples of inherently illiquid assets include houses, cars, antiques, private company interests and some types of debt instruments. On the other end of the spectrum, most listed securities traded at major exchanges, such as stocks, funds, bonds and commodities are very liquid, and can be sold instantaneously during regular market hours at fair market price.  

Illiquid securities carry higher risks than liquid ones; this becomes especially true during times of market turmoil when the ratio of buyers to sellers may be thrown out of balance. During these times, holders of illiquid securities may find themselves unable to unload them at all, or unable to do so without losing a lot of money.

Related Links:
If you think holding several stocks means you're diversified, think again - there's much more to be done to reduce portfolio risk. Diversification Beyond Stocks
Learn how to determine if your assets are safe or if your bank has spread itself too thin. Assessing Bank Assets: Are Your Savings Safe?
Understanding how this measure works in the market can help keep your finances afloat. Diving In To Financial Liquidity
Learn about the current ratio, quick ratio, cash ratio and cash conversion cycle. Liquidity Measurement Ratios
Learn the motives that drive companies into the arms of an acquirer. Why Successful Business Owners Sell Out
At first glance, this product looks like the answer to investors' prayers. In reality, it's just too good to be true. Structured Notes: Buyer Beware!
Learn how to filter out the noise of the market place in order to find a solid way of determing a company's value. Equity Valuation In Good Times And Bad

See words rhyming with "illiquid."

Dansk (Danish)
adj. - ikke likvid, illikvid

Nederlands (Dutch)
niet liquide

Français (French)
adj. - pas immédiatement convertible (en argent liquide), non liquide

Deutsch (German)
adj. - unliquide (schwer in bares Geld umzuwandeln)

Ελληνική (Greek)
adj. - (νομ.) ατεκμηρίωτος

Italiano (Italian)
difficilmente convertibile in denaro liquido

Português (Portuguese)
adj. - ilíquido

Русский (Russian)
неликвидный, юридически не обоснованный

Español (Spanish)
adj. - no realizable, ilíquido, sin fundamento legal

Svenska (Swedish)
adj. - icke flytande

中文（简体）(Chinese (Simplified))
非现金的, 无流动资金的

中文（繁體）(Chinese (Traditional))
adj. - 非現金的, 無流動資金的

한국어 (Korean)
adj. - 현금이 아닌, 유동 자산이 없는

日本語 (Japanese)
adj. - 現金化できない, 現金不足の

العربيه (Arabic)
‏(صفه) غير سائل‏

עברית (Hebrew)
adj. - ‮(נכס) לא נזיל‬

If you are unable to view some languages clearly, click here.