What characterizes lumpy assets?

Lumpy assets are characterized by the fact that they can only be traded in certain quantities, which reflects their indivisibility and the significant size of units in which they are typically transacted. Unlike stocks or bonds which can often be traded in any quantity, lumpy assets, such as real estate or unique collectibles, tend to have minimum sizes or increments for transactions. This can create barriers to transaction and may limit the number of buyers and sellers willing to engage in trade at any given time.

While the other options suggest characteristics such as divisibility, liquidity, and intangibility, these do not hold true for lumpy assets. Unlike easily divisible assets, lumpy assets cannot be easily broken down into smaller parts for sale. Additionally, their liquidity is generally low since they may take longer to sell and involve more complexities in the transaction process. Moreover, lumpy assets are not primarily intangible, as they often represent tangible items that require considerable investment and are not easily converted to cash. Hence, the defining characteristic of being traded only in certain quantities accurately outlines what defines lumpy assets.