Meaning & use
non-liquid asset
Last updated
Meaning
nouncountablefinancebusiness
Property or investments that cannot be quickly turned into cash without losing value.
Grammar: Countable: a non-liquid asset, two non-liquid assets. Often used in the plural.
Patterns
- hold non-liquid assets
- sell a non-liquid asset
- a non-liquid asset such as something
A house is a classic non-liquid asset because selling it takes months.
The fund holds too many non-liquid assets to pay investors quickly.
Banks must keep enough cash and limit their non-liquid assets.
Word forms
| plural | non-liquid assets |
|---|
Common combinations
- hold non-liquid assets
- The company holds non-liquid assets such as land and buildings.
- illiquid asset
- Analysts call these illiquid assets because they are hard to sell fast.
- convert assets into cash
- They had to convert assets into cash before the deadline.
- long-term asset
- A long-term asset like machinery is usually non-liquid.
Synonyms and how they differ
- illiquid asset
- The standard term in finance and the one professionals use; non-liquid asset is a simpler, descriptive alternative.
- fixed asset
- Refers to long-term property used in a business, which is usually non-liquid but not always.
- real estate
- Names one common kind of non-liquid asset rather than the general category.
Opposites
Word family
Commonly confused: non-liquid asset or liquid asset?
non-liquid asset vs liquid asset
Liquid assets are cash or things you can sell at once, like shares; non-liquid assets are the opposite, such as property. Don't mix up the two.
Practice
Which of these is the best example of a non-liquid asset?
Choose one answer.
A factory building takes time and effort to sell, so it is non-liquid. Cash, savings, and easily sold bonds are all liquid assets.
Make it your own
Write a sentence using “non-liquid asset”, then check it and compare it with the examples above.