Separate compensation for illiquidity from cash actually available in a sale.

Family Office Private Wealth Journal · Editorial research desk · 2 November 2026

Companion to Illiquidity and stock returns: cross-section and time-series effects by Yakov Amihud.

Decision in practice

A portfolio appears liquid at closing prices but a family distribution requires selling several days of normal volume.

Committee assignment

Estimate the price impact and trading days for the actual position size, then repeat at reduced volume. Separate redemption notice from cash settlement.

Record and decision rule

Report net cash available by date. Replace a quoted-price liquidity estimate if it assumes the entire position can trade at the last price.

Illustrative application by the editorial desk. The source authors did not evaluate or endorse this procedure.