Liquidity & Marketability Risk

The risk of being unable to sell an investment quickly at a fair price; thinly traded stocks, municipal bonds, non-traded REITs, hedge funds, and DPPs carry the most.

Illiquid assets can be sound investments that simply cannot be exited quickly without a price concession. Suitability questions hinge on matching liquidity needs — an emergency fund does not belong in a limited partnership.

Related terms

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