1. the quality or state of lacking sufficient liquid assets or cash to meet financial obligations; inability to convert assets into cash quickly without significant loss
Usage: commonly used in finance and economics; often refers to individuals, companies, or markets

Examples

• The company faced illiquidity when its major client delayed payment for several months.
• During the financial crisis, many banks experienced severe illiquidity and required government assistance.
• Illiquidity in the real estate market made it difficult for homeowners to sell their properties quickly.
• The startup's illiquidity forced it to seek additional funding from investors.
• Investors worry about illiquidity in emerging markets where trading volumes are low.
• The illiquidity of certain bonds means they cannot be easily sold on the secondary market.