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Baboon
In financial term,what does "move money around" mean?
For example
He leveraged the entire business against something he thought was a sure thing. Kept moving
money around. Borrowing from different deals
Thank you
12 juil. 2020 18:11
Réponses · 3
1
Pretend you have a successful business that is worth a lot of money. If you were a cautious person you would probably decide to keep all the earnings in a bank and let your savings get bigger and bigger every year. Your money isn't going anywhere, it just sits in the bank. Very safe!
But if you were a risk taker you may say to yourself "why should that money just sit there?! I should invest it in something else and try to make more profits. I should MOVE MY MONEY AROUND and invest in other businesses IF I think they are a "sure thing".
12 juillet 2020
I disagree with Ethan. I think it means investing money repeatedly in different types of accounts -- CDs, savings, stocks, bonds. Loans may be a small part of the transactions.
15 juillet 2020
In this case it means that he kept getting(acquiring) more loans. Moving money around would mean moving money between bank accounts or loans so that he could keep getting more loans.
Let me give you an example:
His business owns a car. He gets a loan against the car for $1000. He then must pay the bank $100 per month for the loan.
He then buys a computer for $1000 and gets a loan against the computer for $500. He then must pay the bank $50 per month for the loan.
He is "moving money around" to acquire(get) more assets. Assets in these examples are a car and a computer.
12 juillet 2020
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Baboon
Compétences linguistiques
Chinois (mandarin), Anglais, Thaï
Langue étudiée
Chinois (mandarin), Anglais
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