Quote:
Originally Posted by MarchHare
What benefit is there for a business to hoard cash? If a corporation is sitting on billions of unspent dollars, wouldn't the shareholders demand it be either distributed in the form of dividends or re-invested in the company to grow the business?
Sorry if these seem like stupid/obvious questions, but it doesn't make sense to me why a business would amass money for its own sake. Individuals want to profit, and businesses want to grow; hoarding cash accomplishes neither.
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Companies in North America are sitting on trillions in cash. I don't understand it either, especially when they could invest so much of it in R&D, or other stuff.