illiquidity Definition
the state of being illiquid, i.e., not having enough cash or assets that can be easily converted into cash to meet financial obligations.
Using illiquidity: Examples
Take a moment to familiarize yourself with how "illiquidity" can be used in various situations through the following examples!
Example
The company's illiquidity forced it to sell off its assets.
Example
The bank's illiquidity led to a run on deposits.
Example
The real estate market suffered from illiquidity during the recession.
illiquidity Synonyms and Antonyms
Synonyms for illiquidity
- insolvency
- bankruptcy
- financial distress
Summary: illiquidity in Brief
The term 'illiquidity' [ɪˌlɪkwɪˈdɪti] refers to the state of not having enough cash or assets that can be easily converted into cash to meet financial obligations. It is often associated with insolvency, bankruptcy, and financial distress. Examples include the company's illiquidity forcing it to sell off its assets and the bank's illiquidity leading to a run on deposits.
