Terms Beginning With 'l'

Liquidity Risk

  • January 29, 2020
  • Team Kalkine

This type of risk arises when a bank, company, firm or even an individual is not capable to meet short term financial requirements. Moreover, liquidity risk occurs when an individual or business with immediate cash demands, retains an important asset that it cannot sell or trade at market price because of the shortage of interested buyers, or due to a market inefficiency, where it is challenging to bring sellers and buyers together.

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