Translations:
Illiquid
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Markets or financial instruments are described as being illiquid if there are few buyers and sellers. It may be difficult, or even impossible, to find a reliable price for an illiquid security.
See also: Liquidity ...
Shares in smaller companies are more likely to be illiquid than those in larger companies; they will be less easy to sell and you are likely to find that the spread or difference between the buying and selling price is much wider.
Illiquid asset
Definition: An asset which takes time to convert into cash
Related glossary term: ...
Illiquid: The description of a security for which it is difficult to find a buyer or seller. An illiquid investment is any investment that may be difficult to sell quickly at a price close to its market value.
Illiquid Investment:
An illiquid investment is any investment that may be difficult to sell quickly at a price close to its market value. Examples include Stock in private unlisted companies, commercial real estate and limited partnerships.
Illiquid. Said of investments such as a stock, bond or commodity that cannot be readily converted into cash. A security becomes illiquid when a lack of trading activity in the security makes it hard to sell without taking a large loss.
Illiquid Investment: Any investment that may be difficult to sell quickly at a price close to its market value. Examples include commercial real estate and limited partnerships.
Illiquid
Bond or other security that is not traded actively. May be referred to as traded by appointment only.
Implied volatility
The derived volatility of an asset based on the option premiums quoted by other option traders in the market.
Illiquid
In the context of finance. absence of cash flow needed to fulfill financial debts and meet obligations. In the context of investments, describes a lightly traded investment such as a stock or bond that is not easily converted into cash.
Illiquid
A security, fund or other asset that cannot quickly and easily be converted to cash.
illiquid: An inability to easily convert into cash.
income: Regular earnings, generally from corporate dividends and interest on bonds.
Illiquid asset: Any asset that cannot be sold or disposed of without any loss in capital value in seven days or less.
Illiquid - Any security that cannot easily be sold in the open market; the term is relative and often subject to interpretation.
In and Out - Slang for day trading in a security; bought and sold in the same day. (See "Day Trader") ...
Illiquid - 1.when the cash flow in received by the business is no insufficient to cover the debt servicing requirements of the business. Or 2. an asset that can not be easily turned into cash.
ILO - International Labour Organisation.
Illiquid: Not easily traded or not readily converted to cash.
Incipient Default: A potential default.
Income: Operating cash flows less overheads and depreciation, either before tax or after tax earnings.
Illiquid stocks are highly unsuitable for quick trading strategies. You should only buy such a stock if you are comfortable with holding it for several years.
Illiquid
The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value.
Illiquid, inactively traded stock not familiar market
Symmetric cash matching ...
>> Illiquid Market
In an illiquid market, a small amount of business often moves prices by a disproportionate amount, and bid and offer prices can be far apart.
>> In-the-money ...
See: Illiquid; Liquidity; Volume
In-And-Out Trader
Person who buys and sells the same security in the same day in hopes of profiting from steep price moves.
See: Day Trade; Speculator; Trader ...
I
ILLIQUID: A security that does not have an active secondary market and is therefore difficult to convert to cash before maturity without significant loss of value, similarly, a tangible asset that cannot be converted into cash readily.
Selling an illiquid security is more difficult and the price more volatile.
Liquid and Illiquid Markets
The ability of a market to buy and sell at ease with no impact on price stability. A market is described as liquid if the spread between the bid and the offer is small.
Symbol book special
Illiquid, inactively traded stock not familiar market ...
Illiquid In the context of corporate finance, the absence of cash flow needed to fulfill financial debts and meet obligations.
Realistic on price In trading, and indication that the size under consideration requires price give, especially with illiquid stocks. See: Takes price.
illiquid That which cannot quickly and easily be converted into cash, such as real estate, collectibles, and thinly traded securities. ILS The ISO currency code for the Israeli Shekel.
Illiquid. Thinly traded Infrequently traded. Third market Exchange-listed securities trading in the OTC market.
Understands that the size being considered requires price give, especially with illiquid stocks. See: takes price. Real market The bid and offer prices at which a dealer could do "size.
Illiquid Not easily sold. Incentive stock option Program in which qualifying options are free of tax at the date of grant and the date of exercise.
There are special risks associated with real estate investments, including illiquidity. The investment objectives may not be attained. Record date Date by which a shareholder must officially own shares in order to be entitled to a dividend.
Securitization is the process whereby an entity (originator) sells in the market illiquid and non tradable assets in exchange for cash (the so called "traditional securitization" or "true sale securitization") or sells only the credit risk associated ...
Collateralized debt obligations pool assets which would be more illiquid and/or riskier on their own and therefore not as tradable. Collateralized debt obligations are sold in various tranches.
Value-at-risk is not applicable to illiquid assets, such as real estate or fine art. Value-at-risk considers a portfolio's performance over a specific horizon-a trading day, two weeks, a month, etc. We call this the VaR horizon.
Depository institutions (banks, savings and loans [S&Ls], and credit unions) transform liquid liabilities (checking accounts, savings accounts, and certificates of deposit that can be cashed in prior to maturity) into relatively illiquid assets, ...
The Korn-Kreer-Lenssen model (KKL model) is a discrete trinomial model proposed in 1998 by Ralf Korn, Markus Kreer and Mark Lenssen to model illiquid securities and to value financial derivatives on these.
Securitization is the process of transforming illiquid assets into securities through financial engineering. In the process, different debt instruments are pooled together in a bundle and sold for cash.
Asset backed bonds are bonds available on the debt market that are backed up by a diverse pool of illiquid assets such as accounts receivable collections, credit card debt or mortgages and are relatively safe investments.
The Troubled Asset Relief Program (TARP) commenced in October 2008 as a means whereby the US Treasury could buy illiquid assets from banks and other financial institutions, thus allowing them to stabilise their balance sheets.
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.
If not, you may end up with an illiquid investment called minority business ownership interest, whose value drops due to discounts for lack of control and marketability.
See Also
business valuation approaches
business valuation methods ...
Funds which track illiquid and small foreign exchanges and sectors are not much suitable for investors who want to minimize their portfolio risks.
First, it makes CEFs a good structure in which to invest illiquid securities, such as emerging-market stocks, municipal bonds, etc.
Private equities are generally illiquid and thought of as a long-term investment. Private equity investments are not subject to the same high level of government regulation as stock offerings to the general public.
ease of converting assets to cash. Contrast with illiquidity .
Examples: Common stocks and U.S. savings bonds have good liquidity. real estate and many types of collectibles generally have poor liquidity.
Related Terms: ...
Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges.
Without the limitation on the amount that an investor can lose, the time and effort required to determine whether the stock could wipe the investor out would render the stock market very illiquid (as is observed of the very illiquid market for ...
A measure of a company's liquidity and of its ability to pay off short-term obligations without having to sell relatively illiquid assets. The ratio compares the company's cash plus accounts receivable (quick assets) to its current liabilities.
GOING CONCERN - refers to the liquidity of a concern. If the concern is illiquid, the viability of that...
GOING CONCERN CONCEPT - the underlying assumption that any accountant makes when he prepares a set of a...
Market sentiment and herding behaviour
Use of complex derivatives
Overvaluation
illiquidity
Program trading - automatic trading by computers which react to certain data.
In trading, and indication that the size under consideration requires price give, especially with illiquid stocks. See: Takes price.
Realized compound yield ...
Generally, noninvestment grade bonds carry higher default and illiquidity risks. The designation of quality classifications that coincide with different bond ratings assigned by major credit rating agencies.
Net Capital
The capital of the brokerage firm after adjusting total equity for the firms illiquid assets and for the risk associated with its securities portfolio.
When a stock reaches a high price making it illiquid or difficult to trade, management may split the stock to get the price into a more marketable trading range.
Used in the context of general equities. Illiquid, inactively traded stock that lacks market familiarity.
Symmetric cash matching ...
If a company only has a small proportion of its stock available in the market, it becomes more difficult to match buyers and sellers. The risk with illiquid stock is that you may not be able to buy or sell immediately and at your chosen price.
Liquidity risk: The possibility that you may not be able to readily access your funds when you want or need them most, because they are invested in illiquid assets (e.g. real estate or funds with fixed investment periods or conditions).
Trades by appointment
A stock that is very difficult to trade to because of illiquidity.
Trading
Buying and selling securities.
A charge assessed against an invetor for redeeming shares or interests in a fund. Often this charge is used for early or premature withdrawals. This feature is more common for funds investing in illiquid securities or emerging market funds and ...
 See also: Banks, Expense, Values, Saving, Indenture
  
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