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Illiquid - Meaning, Definition & English Examples

Illiquid describes an asset or investment that cannot be easily sold or converted into cash without a significant loss in value, often due to a lack of buyers or market demand.

illiquid

/ɪˈlɪkwɪd/ /ɪˈlɪkwɪd/

Definition:

Not easily converted into cash without significant loss of value.

Synonyms:

non-liquid, frozen, unmarketable

Part of Speech:

adjective

Antonyms:

liquid, marketable

Common Collocations:

illiquid assets, illiquid market, illiquid investment

Derivatives:

illiquidity, illiquidly

Usage Tips:

Use "illiquid" to describe assets or investments that cannot be quickly sold for cash.

Common Phrases:

illiquid holdings, stuck in an illiquid position

Etymology:

Derived from Latin "in-" (not) + "liquidus" (fluid), meaning not easily convertible to cash.

Examples:

  • 1. The company's illiquid assets made it hard to pay debts quickly.
  • 2. Real estate is often considered illiquid compared to stocks or bonds.
  • 3. Investors avoid illiquid markets due to the difficulty of selling assets swiftly.
  • 4. Her portfolio included several illiquid investments tied up for years.

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