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Chapter 30. Finance > Investments

Investments

Individuals, companies, and governments all invest money, hoping that the investment will earn them more money. Investments may be large sums of money, or they may be quite modest. Stocks, bonds, and real estate are examples of investments. Depositing any amount in a savings account that pays some rate of interest is an investment. Investments may be relatively safe, as in the savings account example, or they may be risky. As a general rule, risky investments have potential for greater rewards—but also for greater losses.

Pig House Investment Reaps Large Profits

NEW YORK—John Rumpole announced today that his investment of $5 million in a company that manufactures shelters for pigs has made a sizable profit. “The return on this investment has been much greater than expected,” commented Rumpole. “Due to an extremely harsh winter in the key pig farming regions of the world, the shelters were in very high demand. Business was excellent!”

In addition to the pig houses, eccentric Rumpole's portfolio includes investments in Alaskan icebergs, stock in a tapioca company, stock in a deep-sea shipwreck recovery company, and agate mines in Colorado.



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