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CrO4^2- | If all of Bill Gates' money is in stocks then how does he afford expensive things? |
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Feeling Mutual
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The stocks pay dividends |
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Cristiano R
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Maybe, he's a deep Thinker, like you ! :-) |
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dalton
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In saying "all of his money is in stock" doesn't mean his wallet is empty or he do not have cash in the bank. Another thing, surely he has a Platinum Card, wherein he can buy things up to a million $ in a single transaction without outlaying cash! |
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poonky
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I'm not sure if Mr Gates or his long list of financial advisers would be naive enough to, as they say, put all his eggs in one basket. He would have a proportion kept as cash in a bank somewhere.
But the key to your question is "liquidity". Liquidity is a broad term that give you an idea of how easy it is to turn an asset into cash. STOCKS are considered to be HIGHLY LIQUID ASSETS in that if funds are required, Mr Gates can just sell them on the stock exchange to receive money for them. Then the funds received would be directly deposited into his bank account for him to buy whatever he wants.
Compare this to say, a house. Gates would have to go to an agent and place an interest to sell, then they would need to make the house look good, then potential buyers would need to come in to look at the house for themselves... and so on. This entire process could take weeks or even months, hence a house is comparatively illiquid.
Make sense? |
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LadyCatherine
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I would think that NOT all of his money is tied up in stocks.
Anyway, stock holders get dividend checks for there stock..he could be using that money .. |
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audreybabyluv
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must b nice to b a billionaire |
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FRANK
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All of his money is not in stock. |
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