This is an economics question. There are scenarios that this can happen. No trick question here.
2006-12-12 15:41:32 · 6 answers · asked by Chainsaw 6 in Politics & Government ➔ Other - Politics & Government
When someone is "worth" something it mean if that person were to sell EVERYTHING they had, it would be how much money they would then have. Its possible to have no money physically becuase that person just purchased a new business or car or house. Althought they are worth however much that piece of poperty is, they don't ahve that cash on hand to spend
2006-12-12 15:51:16 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It has to be liquid, i.e. go to your bank or coffee can and pull out what you need.
Trusts, estate stuff, many CD's and the like are not.
It can evaporate QUICKLY if the market changes. Say you are "short" on a stock and it goes UP, woops.
If you are liquid you can ride out a down market; if you are highly leveraged, SORRY. You can only use "magic money" as colateral for so long.
Liquidity comes from BALANCED investments. Leverage 30%-40% depending upon your knowledege and stress tolerance. Put the rest in something SOLID. Then use the solid returns to increase your position in leverage. If you get a BIG hit on the leveraged, split the gain between leverage and solid.
Learned the HARD way in real estate.
J
2006-12-12 16:02:07 · answer #2 · answered by jacquesstcroix 3 · 1⤊ 0⤋
What you for sure do not comprehend is that a good type of the millionaire Hollywood would celebrities were purely like you and intensely probably poorer So provide them their props for installation there and dealing their azzes of to make it.
2016-11-26 00:09:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The person is supposed to inherit a million dollar property that his/her grandparent left, but have no knowledge of it yet.
2006-12-12 15:45:00 · answer #4 · answered by Anonymous · 0⤊ 1⤋
depends on the currency - somebody worth a million rubles or korean won will still be broke
2006-12-12 15:49:47 · answer #5 · answered by forex 2 · 0⤊ 1⤋
Most wealth is on paper only. Stocks,bonds, real estate esp. family home.
2006-12-12 15:44:26 · answer #6 · answered by Wolfpacker 6 · 0⤊ 1⤋