As far as I understand it, a billionaire’s wealth is wrapped up in stock, which is used as collateral to borrow money to actually spend. So how do they pay off those loans? With other loans? Loans all the way down?
In: Economics
With dividends or selling stock. Another option is too continue rolling the loan over unril you die then it gets settled by your estate selling the stick.
Which option is chosen depends on current interrst rates and the tax law of the country.
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