Theriskthat an individual or firm will have difficultysellinganassetwithout incurring aloss. That is, there may be a lack of interest in themarketfor a particular asset, forcing theownerto sell it for less than its actualvalue. Liquidity risk may be quantified as the difference between an ass...
Marketability relates to the saleability (not necessarily the liquidity) of the asset. The same NAVCA glossary defines this characteristic as “the ability to quickly convert property to cash at a minimal cost.” It should also be noted that this must also take into account thetransaction riskof...
Berger, A. N., Cowan, A. M., & Frame, W. S. (2011). The surprising use of credit scoring in small business lending by community banks and the attendant effects on credit availability, risk, and profitability.Journal of Financial Services Research,39(1), 1–17. ArticleGoogle Scholar Be...