What is Liquidity Risk?
Liquidity Risk The risk that a portfolio or asset cannot be bought or sold quickly enough in the market to prevent or minimize a loss, especially under stressed market conditions.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Liquidity Risk” Used in Practice?
Liquidity risk assessments are central to portfolio construction and stress testing, especially for institutional investors holding less liquid assets.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Liquidity Risk” Free with Termify
Master Liquidity Risk and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Liquidity Risk?
The risk that a portfolio or asset cannot be bought or sold quickly enough in the market to prevent or minimize a loss, especially under stressed market conditions.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Liquidity Risk and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: