illiquid asset
[/ɪˈlɪkwɪd ˈæset/]
nounpl: illiquid assets
ativo ilíquido
1. An investment or property that cannot be quickly converted into cash without significant loss of value or delay
Real estate is considered an illiquid asset because it takes time to sell a property.
Imóvel é considerado um ativo ilíquido porque leva tempo para vender uma propriedade.
2. A financial asset with limited trading volume and few willing buyers or sellers in the market
Penny stocks are often illiquid assets with low trading volumes.
Ações de penny stocks são frequentemente ativos ilíquidos com baixo volume de negociação.
3. An asset that may require discounting its value substantially to be sold quickly
The investor had to sell the illiquid asset at a significant discount to raise cash.
O investidor teve que vender o ativo ilíquido com desconto significativo para levantar dinheiro.
In both Brazilian and American financial contexts, illiquid assets are critical considerations for investment strategies. Brazilian investors often hold significant illiquid assets in real estate and private companies. The term is essential in financial planning, particularly for high-net-worth individuals and institutional investors who must balance portfolio liquidity with longer-term investment goals. Understanding illiquidity is especially important in Brazil's banking system for credit assessment and collateral valuation.
Related Idioms & Phrases
tied up in illiquid assets
cash crunch due to illiquid assets
sitting on illiquid assets
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