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.
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.