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English Lexicon

Illiquid

/ɪˈlɪk.wɪd/
adjectiveCEFR C1 (Advanced)Top #14500 frequency
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Comprehensive Definitions & Senses

2 senses
As adjective
  1. 1

    Of an asset or security, not easily sold or exchanged for cash without a substantial loss in value.

    "Real estate is considered an illiquid asset because it can take months to find a buyer."
  2. 2

    Lacking sufficient cash or easily convertible assets to meet short-term financial obligations.

    "The company became illiquid after unexpected supply chain costs drained its cash reserves."
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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

Derived from the prefix 'il-' (a variant of 'in-' meaning 'not') combined with 'liquid', originating from the Latin 'liquidus' meaning fluid or clear. The financial sense developed in the 20th century to describe assets that cannot easily be converted into cash without a significant loss in value.

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