Liquidity Risk

What Does Liquidity Risk Mean?
The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimize a loss.

Investopedia explains Liquidity Risk
Usually reflected in a wide bid-ask spread or large price movements.

Related Terms

Core Liquidity
Country Risk
Liquid Asset
Liquidity
Liquidity Cushion
Political Risk
Price Risk
Reinvestment Risk
Risk/Return Tradeoff
Systematic Risk
Unsystematic Risk
More Related Terms

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