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Home > QFINANCE Dictionary > Definition of illiquid

Definition of

illiquid

  • 1.

    lacking easy access to cash used to describe a person or business that lacks cash or assets such as securities that can readily be converted into cash

  • 2.

    not easily convertible to cash used to describe an asset that cannot be easily converted into cash

illiquid - Related Articles

  • Valuation

    Key Concepts

    Typically valuations of illiquid assets or investments can be partly objective and partly subjective, with the result that sellers can value assets they own at a level considerably higher than the valuation put on them by potential buyers.

  • Securitization: Understanding the Risks and Rewards

    Best Practice

    sheet liquidity by converting long-term and illiquid receivables into funds that can be used for additional value-generating investments. A securitization can also help to manage any mismatch between assets and liabilities. Finally, to the extent allowable, selective securitizations of receivables can
    By Tarun Sabarwal

  • Identifying Weak Points in Your Liquidity

    Checklists

    Having liquidity means having the ability to meet obligations as they become due. Liquidity is crucial to the viability, and credibility, of any bank. Even a whiff of a rumor of illiquidity can be enough to trigger a run on a bank—for example, the run on Northern Rock in the United Kingdom in 2007

  • Booms, Busts, and How to Navigate Troubled Waters

    Best Practice

    may lead to further exuberance when demand becomes much bigger than potential supply. Especially in illiquid assets like houses, short-term demand can drive prices far from fundamentally justified values.
    By Joachim Klement

More

Definitions of ’illiquid’ and meaning of ’illiquid’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’illiquid’ and other financial terms with our online QFINANCE Financial Dictionary.

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