Respuesta :

The inability to sell infrequently traded investments (resulting in a loss of value) describes liquidity risk.

A company's or an individual's liquidity refers to its capacity to settle its debts without suffering severe losses.

Liquidity measurement ratios are used by creditors, managers, and investors to assess the risk of a business.

Liquidity risk occurs when a company, organization, or financial institution is unable to pay its short-term debt obligations.

When a company, organization, or financial institution is unable to pay its short-term debt obligations, liquidity risk arises.

There may not be enough bidders or an inefficient market, which would prevent the investor or company from selling the asset for cash without forfeiting money and income.

Hence, liquidity risk is the answer.

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