liquidity risk
Definition
The risk that arises from the difficulty of selling an asset. An investment may sometimes need to be sold quickly. Unfortunately, an insufficient secondary market may prevent the liquidation or limit the funds that can be generated from the asset. Some assets are highly liquid and have low liquidity risk (such as stock of a publicly traded company), while other assets are highly illiquid and have high liquidity risk (such as a house).
 Cite this definition
'liquidity risk
' appears in the definitions of these terms on BusinessDictionary.com
securities marketability risk, treasuries
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