So, you sell your illiquid real estate and get, in return, another piece of illiquid real estate.
Preference shares are illiquid, or not easily traded, so it was easier to manipulate their prices.
And illiquid markets mean volatile prices for those few who do want to trade.
Of course, if that's what you want, you don't need to buy an illiquid REIT.
There's a logic behind the relative cheapness of illiquid stocks, of course: They're riskier.
Harvard loaded up on illiquid stakes in private equity partnerships, emerging-market stocks, timberland and other commodities.
This can prove difficult, especially when holding shares of an illiquid private stock like Facebook.
FORBES: Facebook's Financials Look Impressive, $50 Billion Valuation Looks High
Many of these vehicles are highly risky, unsuitable for older clients and highly illiquid.
FORBES: Investor Alert: Broker-Sold Investment Trouble Spots
For instance, labor is usually undiversified, and the value of your labor is illiquid.
But as the industry expanded into illiquid asset categories, that strategy was no longer practical.
Only accredited investors can buy hedge funds, and many such funds contain illiquid assets.
But worst of all is housing's often illiquid qualities and their impact on worker migration.
In an illiquid market, it behooves both buyer and seller to carefully arrive at a value.
The shares that are traded are highly illiquid, and almost no venture capital is available.
Pouring 50% of your liquid net worth into an illiquid asset class like art is crazy.
FORBES: How to Outsmart the Billionaires Who'll Bid $80 Million for "The Scream"
For illiquid assets, Enron had considerable discretion in deciding what constituted a fair price.
But the futures market is small and illiquid and may overstate the possible declines.
Around a quarter of its portfolio consists of illiquid shares in privatised state companies and banks.
Dealers say the Greek market is quite illiquid since insuring against default is so expensive.
ECONOMIST: How the credit-default market will judge a deal on Greece
The return on such high-risk, often illiquid investments can be great when the market is going great.
It all sounds suspiciously like the subprime mortgage boom, when banks parked illiquid assets in off-balance-sheet vehicles.
It tried to sell off illiquid stakes in private equity partnerships but couldn't get a decent price.
The problem: Under current law, resale of securitized leases is prohibited -- meaning the instruments are totally illiquid.
Throw in the fact that preferred issues are usually small and illiquid, limiting their appeal to institutional investors.
FORBES: Forget The Dogs, For Rich Income Look To Dow Preferreds
Mortgages became very illiquid, for lenders subprime market and for consumers who had too little equity to refinance.
Lets not forget that private investments are illiquid and high-risk, whether done offline or through a crowdfunding platform.
This consolidated trading range is keeping most players happily on the sideline and away from any illiquid trouble.
FORBES: Currencies Stall as Weak European Data Weighs on Germany
Many hedge funds also have strategies that make them long illiquid assets, because such assets offer higher returns.
Some of that collateral, now mostly asset-backed securities, is so illiquid that it has yet to be unwound.
Most asset managers, though, have suffered through the recession, as investors fled the illiquid products that characterize Blackstone.
FORBES: Why Investors Need A Diary To Track Stupid Mistakes And Brillant Moves
应用推荐