An asset/ investment for which there is no liquid market (typically, a liquid public market) available. Holders of illiquid or thinly traded assets may not be able to sell such assets in the market for extended periods—if ever. Trading of such assets is by nature complex, fragmented and infrequent. Given the high illiquidity thinly-traded assets feature, investors may only be able to sell in the over-the-counter market- which is naturally a set up for infrequent privately negotiated transactions. Not surprisingly, sales of thinly traded assets typically take place at below-market prices- usually prices far lower than would be otherwise if there were a liquid public market.

Prospective buyers of thinly traded assets realize the inherent problem that sellers face in order to liquidate their long positions- which buying investors would face later in attempting to re-sell the assets in the market.

Examples of thinly traded assets include silver, micro-cap stocks, and corporate bonds.