Illiquid Assets

Illiquid assets are investments that cannot be quickly or easily converted into cash without significantly affecting their value. These assets often require a longer time to sell or may have limited buyers, making them less attractive for investors who need quick access to funds. Examples of illiquid assets include real estate, private equity investments, fine art, or collectibles. Illiquid assets tend to have higher risks and can limit financial flexibility but may offer long-term returns.

Example

A commercial property is considered an illiquid asset because it may take months or years to find a buyer, and selling it quickly could result in a lower price than its market value.