illiquidity
/ˌɪlɪˈkwɪdɪti/
Definition
The state of being an asset that cannot be easily or quickly converted into cash without a substantial loss in value.
Etymology
Derived from the Latin prefix 'in-' (not) and 'liquidus' (fluid or clear), which evolved into the financial sense of 'liquid' meaning easily convertible to cash. The term entered English in the 19th century to describe financial positions that lack sufficient ready cash.
In the news
The article lists the inherent illiquidity of real estate investments as a potential risk factor that could impact the company's future financial results. This serves as a cautionary note to investors regarding the long-term nature of holding property assets.
Realty Income Forms Programmatic Joint Venture with Cloud Capital and a Global Institutional Investor to Invest in Hyperscale Data Centers; Initial Seed Assets Valued at Over $6 Billion
Read the full article ↗PR Newswire