When you’re rich out of market shares can you actually, i mean, are you able to buy things whenever you want? or should wealthy be measured more precisely by physical goods?
In: Economics
I think what you’re asking about is the difference between “net worth” and “liquid assets”?
Net worth is the total value of everything you have, minus anything you owe. Own a house? The value of that house counts as part of your net worth. Still owe on a mortgage? The remaining balance due counts *against* your net worth. All of your bank accounts count towards your net worth, as do the values of any stocks you may hold. This is kinda your “theoretical” monetary value.
Liquid assets are things you own that either are cash, or can quickly and easily be converted into cash. This includes all of your bank accounts (because you can withdraw $20 and go buy a meal anytime you want), but not the value of your house (because selling your house is A Big Deal and you can’t easily sell your house if you want a hamburger). This is kinda your “actual” purchasing power.
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