illiquid Hear it!

illiquid Definition

il·liquid (i likwid)

adjective

  1. not readily convertible into cash
  2. characterized by an insufficiency of cash

Etymology: < in- + liquid

illiquid Related Forms

il·li·quid·ity (il′i kwidi tē) noun

illiquid Finance Definition

  1. An investment that can’t be quickly converted into cash. Such investments include limited partnerships, real estate, or investment into securities or debt of a company that is thinly traded or which doesn’t trade on major exchanges.
  2. A company that doesn’t have sufficient cash flow to pay its interest charges and expenses.

illiquid Usage Examples

Modifies a noun

  • asset: In the manic phase, people of wealth or credit switch out of money or borrow to buy real or illiquid financial assets.
  • paper: In order for savers to be indifferent between the two strategies, illiquid paper must offer a higher return than liquid paper.
  • security: For illiquid securities, they would generally avoid re-use to ensure their availability for return.
  • saving: Banks have in general offered only the traditional, illiquid savings account to poor people.
  • investment: But property is an illiquid investment ( meaning it cannot be sold quickly ) and can involve high transaction costs.
  • instrument: The relaxation of lending criteria in some markets and increased demand for illiquid instruments suggests that financial discipline may have weakened.

Modifying Another Word

  • relatively: Relatively liquid assets fetch higher prices than relatively illiquid assets, for any given ( gross ) return.
  • very: Unlike other assets, properties have to be managed and markets can be very illiquid, he says.
  • potentially: It is significant that some market contacts have expressed misgiving about the present scale of demand for risky and potentially illiquid assets.
  • seriously: He spent over £ 250,000 on litigation and on his death in 1859 was not insolvent but seriously illiquid.

Browse dictionary entries near illiquid

  1. Illinoisan
  2. Illinois
  3. illinium
  4. illimitable
  5. Illimani
  6. illicit
  7. illiberal
  8. illegitimate
  9. illegitimacy
  10. illegibly
  1. illite
  2. illiteracy
  3. illiterate
  4. illness
  5. illocutionary
  6. illogic
  7. illogical
  8. illume
  9. illuminance
  10. illuminant