il·​liq·​uid | \ (ˌ)i(l)-ˈlik-wəd How to pronounce illiquid (audio) \

Definition of illiquid

1 : not being cash or readily convertible into cash illiquid holdings
2 : deficient in liquid assets an illiquid bank

Other Words from illiquid

illiquidity \ (ˌ)i(l)-​ˌli-​ˈkwi-​də-​tē How to pronounce illiquid (audio) \ noun

Examples of illiquid in a Sentence

Recent Examples on the Web The fact is that survivors tend to prefer cash over hard, illiquid assets. Meredith Moore, Forbes, 15 Apr. 2022 Some firms are thinking about asking the Securities and Exchange Commission for relief from a cap on the proportion of illiquid securities that funds can hold—currently 15%—and from rules governing redemptions, people familiar with the matter said. Justin Baer, WSJ, 3 Mar. 2022 Investors would thus have an incentive to pile into illiquid assets such as real estate to avoid regularly liquidating stock to pay taxes. The Editorial Board, WSJ, 28 Mar. 2022 Another argument is that this will push people into illiquid, hard-to-value assets and out of the public markets. Jesse Eisinger, ProPublica, 28 Feb. 2022 Regulation around investor suitability appropriately limits investment in illiquid, private companies to sophisticated investors who can accept that risk and liquidity profile. Mike Ryan, Fortune, 4 Feb. 2022 State and local government retirement funds are increasing their reliance on the costly and illiquid asset class despite a strong performance from public markets in recent years. Heather Gillers, WSJ, 10 Jan. 2022 For instance, 100 years ago a mortgage was an incredibly illiquid asset: A bank had little choice after issuing a mortgage other than collecting its monthly payments until the homeowner sold the house, defaulted, or paid it off. Ike Brannon, Forbes, 12 Oct. 2021 The tokenization of real estate brings with it a major advantage: The world's most illiquid asset class is made accessible to a broad investor base. Levent Künzi, Forbes, 25 Oct. 2021 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'illiquid.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of illiquid

1913, in the meaning defined at sense 1

Learn More About illiquid

Time Traveler for illiquid

Time Traveler

The first known use of illiquid was in 1913

See more words from the same year

Dictionary Entries Near illiquid

illipe butter



See More Nearby Entries 

Statistics for illiquid

Last Updated

13 May 2022

Cite this Entry

“Illiquid.” Dictionary, Merriam-Webster, Accessed 7 Jul. 2022.

Style: MLA
MLACheck Mark Icon ChicagoCheck Mark Icon APACheck Mark Icon Merriam-WebsterCheck Mark Icon


Test Your Vocabulary

Which Word Does Not Belong?

  • one green toy robot amidst many red toy robots
  • Which of these words does not mean "nonsense"?
True or False

Test your knowledge - and maybe learn something along the way.

Universal Daily Crossword

A daily challenge for crossword fanatics.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!