The definition of 'Illiquid asset'

An illiquid asset is one that can’t be turned into cash quickly or without losing substantial value.

For example, a shareholding in a private (unlisted) company is an illiquid asset, whereas shares in a company listed on a major stock exchange have much greater liquidity.

In times of economic turmoil especially, holders of illiquid assets may be unable to dispose of them or may only be able to do so at a substantial loss.