Definition

Not easily turned into cash or lacking cash and liquid assets.

Example

Investing in illiquid assets can be risky because they cannot be quickly sold for cash.

Conversation

I was looking at some investment options, and I found a few that are quite illiquid.

Really? That sounds risky. What do you mean by illiquid?

It means they can't be easily converted into cash when you need it.

Got it! I prefer sticking to more liquid options for quick access.

Synonyms & Antonyms

Root Explanation

Illiquid → It is formed from "in-" (meaning not) and "liquidus" (from Latin, meaning liquid or fluid). The word "illiquid" refers to something that is not liquid, often used in finance to describe assets that cannot be quickly converted into cash.

Memory Tip

Think of 'not liquid' — 'in-' means not, and 'liquidus' means liquid. This helps you remember that illiquid refers to something that cannot easily flow or be converted into cash.

Visually Confused Words