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.