What context can I use each word in?
Learn when and how to use these words with these examples!
illiquidity
Example
The real estate market is experiencing illiquidity due to a lack of buyers. [illiquidity: noun]
Example
The investor faced illiquidity when they couldn't sell their shares due to low trading volume. [illiquidity: noun]
bankruptcy
Example
The company filed for bankruptcy after failing to pay its creditors. [bankruptcy: noun]
Example
He declared personal bankruptcy after accumulating too much debt. [bankruptcy: noun]
Good things to know
Which word is more common?
Bankruptcy is a more commonly used term than illiquidity in everyday language, as it is a more severe and well-known financial condition.
Whatโs the difference in the tone of formality between illiquidity and bankruptcy?
Bankruptcy is a formal term that is often used in legal and business contexts, while illiquidity is less formal and can be used in a wider range of contexts.
