Meaning of the word illiquid in English

What does illiquid mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

illiquid

US /ɪˈlɪkwɪd/
UK /ɪˈlɪkwɪd/

Adjective

1.

(of an asset) not easily converted into cash

Example:
Real estate is often considered an illiquid asset.
The company faced problems due to its illiquid investments.
2.

(of a market) having few buyers and sellers, making it difficult to trade assets without significantly affecting their price

Example:
The market for rare art can be very illiquid.
Trading in an illiquid market carries higher risks.