Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- MARKET LIQUIDITY RISK
The potential that an institution cannot easily unwind or offset specific exposures, such as investments held as liquidity reserves, without incurring a loss because of inadequate market depth or market disruptions. One of the three primary components of liquidity risk along with mismatch liquidity risk and liquidity contingency risk.Back