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What is liquidity risk?

Liquidity risk is the amount of risk associated with an asset being bought and sold on the market where they might lose some money if they aren't able to sell it quick enough. Liquidity risk is something an investor must examine before making a large purchase or entering an unstable market.

Other Financial Terms and Vocabulary

Data is provided for informational purposes only, and is not intended for trading purposes. Although data are gathered from sources believed to be reliable, Fund Mojo and its content providers cannot guarantee completeness and accuracy. Performance data quoted represents past performance. Fund Mojo and its content providers accept no liability for reliance on this data.