Liquidity risk is the possibility that an investor may not be able to sell an asset quickly or at a fair price when needed. It can affect both individuals and institutions if assets cannot be converted into cash promptly to meet obligations. Types of Liquidity Risk Market Liquidity Risk: Occurs when there are not enough buyers or a thin market, making it difficult to sell an asset... https://www.hdfcfund.com/learners-corner/beginner/what-liquidity-risk-meaning-types-and-management-investors