Interested to learn about the potential tax savings associated with angel investing? Sign up for our upcoming webinar →

< Back to blogs < Back to Glossary

Illiquid

When an investment is described as illiquid, it generally means that there is no readily available market in which to sell the investment. Investments in private equity are illiquid for two main reasons, first the private equity offering is not registered with the SEC, and so there are legal restrictions on transfer and/or secondly, the investor signs offering documents which contains numerous contractual restrictions on the transfer or sale of the investment in the offering.

Categories: