In Macroeconomics, we learn that the circular flow diagram is a simple economic model that illustrates the flows of goods and services through the economy. Can the arrow that connects the "Financial Market" sector of the economy to the "Firm" sector be double-headed?
Traditionally, in the class, I've learned that Firms borrow money from the financial market to make investments in capital (so the arrow is always pointing from the Financial Market to the Firms), but I've never seen a situation where money flows from the Firms into the Financial Market.
Can this occur? And if so, can you give an example of when?