illiquid
Definition
- Adjective:
- Not easily convertible into cash: "illiquid" describes assets or investments that cannot be quickly sold or exchanged for cash without a significant loss in value.
- Lacking liquidity: In finance, referring to a market or asset with low trading volume or few buyers and sellers, making it difficult to sell promptly.
Usage Examples
- (Property is not easily turned into cash.)
- (The stock has low trading activity.)
- (Assets that cannot be sold quickly.)
Advanced Usage
"illiquid market": a market where assets are rarely traded, leading to price volatility.
- The antique furniture market is highly illiquid, making it hard to determine fair prices. (Few transactions occur, causing price uncertainty.)
"illiquid position": a financial holding that cannot be easily liquidated.
- The fund held an illiquid position in a private startup, tying up capital for years. (An investment that cannot be sold quickly.)
Variants and Related Words
Liquid (adj): easily convertible to cash; opposite of illiquid.
- Cash is the most liquid asset. (Easily used for payment.)
Liquidity (n): the state of being liquid; the ability to convert assets to cash.
- The bank maintains high liquidity to meet withdrawal demands. (Availability of cash.)
Illiquidity (n): the state of being illiquid.
- The illiquidity of the bond market caused delays in selling. (Difficulty in converting to cash.)
Synonyms
- Unliquid: not easily turned into cash.
- Non-marketable: difficult to sell quickly.
- Hard-to-sell: requiring effort to find a buyer.
Antonyms
- Liquid: easily convertible to cash.
- Marketable: readily sold in a market.
Related Idioms
"Stuck with an illiquid asset": unable to sell an investment quickly.
- After the crash, many investors were stuck with illiquid assets they couldn't unload. (Trapped in hard-to-sell holdings.)
"Illiquid as a rock": extremely difficult to convert to cash.
- That rare painting is as illiquid as a rock; no one is buying. (Impossible to sell quickly.)