illiquid investment & finance definition
- 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.
- A company
that doesn’t have sufficient cash flow to pay its interest charges and
expenses.
See illiquid in Wall Street Words
- Of or relating to an asset that is difficult to buy or sell in a short period of time without its price being affected. For example, a large block of stock or a small amount of an infrequently traded stock is likely to be difficult to sell without a reduced price being offered to potential buyers. Compare liquid 1.
- Of, relating to, or being an investment position in which a low proportion of assets is in cash or near-cash, thereby creating difficulty for the investor who is trying to raise funds for another purpose.
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