Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is the Liquidity Premium?

By Lee Samaha – Updated Feb 26, 2025 at 3:11PM

Key Points

  • Liquidity premium demands higher returns for assets harder to sell quickly at fair prices.
  • Investors might accept lower yields on liquid assets than illiquid ones, impacting pricing.
  • Understanding liquidity premiums aids in evaluating similar assets and making investment choices.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.