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Untradeable Assets

Untradeable assets are financial instruments or physical assets that cannot be easily bought or sold in financial markets due to various reasons, such as lack of liquidity, legal restrictions, or the absence of a secondary market. These assets may include privately held shares, certain types of real estate, patents, or personal property. Untradeable assets can be difficult to value and convert into cash, which limits their flexibility as investments.

Example

A privately owned company’s shares may be considered untradeable assets because they are not listed on a public exchange, making it difficult for investors to sell them quickly.

Key points

Assets that cannot be easily bought or sold in the financial markets.

May include privately held shares, certain real estate, or intellectual property.

Lack liquidity and can be challenging to convert into cash.

Quick Answers to Curious Questions

Assets may be untradeable due to illiquidity, legal restrictions, or the absence of a secondary market where they can be bought or sold.

They are difficult to value, lack liquidity, and cannot be easily converted into cash, limiting an investor’s flexibility.

Liquid assets can be quickly and easily sold in the market, while untradeable assets lack liquidity and are harder to buy or sell.
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