How come Billionaires don’t have actually billions of dollars and what can they do with their asset money.

Question

I already know that billionaires do not in fact have billions of dollars lying around, rather the money is assets in business, but how come they don’t get all the money when they rack it all up? And what can they do with this “asset” money if they don’t technically have it?

In: 0

Answer 1

The vast majority of billionaires’ wealth is not in cash, but in assets such as stocks, bonds, real estate, and businesses. While they may have some cash on hand, it is a small percentage of their overall wealth.
What they can do with this asset money is use it to generate more wealth. For example, they can use it to buy more shares of stock, which will increase in value over time. They can also use it to invest in new businesses, which can create more jobs and generate more tax revenue.