1. Difficulty converting something to cash. Real property is deemed illiquid because turning it into money is not easy.
2. Inadequate cash on hand to meet operations.
Related information about illiquidity:
- illiquidity - definition of illiquidity by the Free Online Dictionary ...
il·liq·uid ( -l k w d). adj. 1. Not readily converted into cash: illiquid assets. 2. Lacking cash or liquid assets. il li·quid i·ty n. illiquid [ɪˈlɪkwɪd]. adj. 1. ( Economics ...
- illiquidity - Financial Dictionary - The Free Dictionary
Describing an asset that is difficult to sell because of its expense, lack of interested buyers, or some other reason. Examples of illiquid assets include real estate, ...
- The Cost of Illiquidity - NYU Stern School of Business
The simplest way to think about illiquidity is to consider it the cost of buyer's remorse: it is the cost of reversing an asset trade almost instantaneously after ...
- Illiquidity and stock returns - Computer & Information Science ...
Abstract. This paper shows that over time, expected market illiquidity positively affects ex ante ... This complements the cross-sectional positive return–illiquidity ...
- Market liquidity - Wikipedia, the free encyclopedia
The risk of illiquidity need not apply only to individual investments: whole portfolios are subject to market risk. Financial institutions and asset managers that ...
- Economist's View: Illiquidity and Insolvency
Sep 22, 2008 ... Someone asked how the bailout is supposed to work: I'd say it this way, there are two problems. 1. Financial firms are stuck holding securities ...
- Illiquidity Component of Credit Risk∗ - Princeton University
for illiquidity risk and show that it is (i) decreasing in the “liquidity ratio" —the ratio of .... and illiquidity risk, and how the two are jointly determined as a function of ...
- On the Excess Returns to Illiquidity - Faculty
expected theoretically, but are not actually a premium for illiquidity, per se. ... A large empirical literature now documents the impact of illiquidity on returns.