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Financial theory (a reliable but not foolproof way to look at this) would suggest that if a company you own shares in has too much cash, the owners would hold o
by mathattack 10y ago
Financial theory (a reliable but not foolproof way to look at this) would suggest that if a company you own shares in has too much cash, the owners would hold onto less cash elsewhere.
This theory holds up in terms of maximizing returns, though not in a cash crunch.