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+++++++ PASSION INVESTMENTS: art collections and luxury goods. +++++++ PONZI SCHEME: a fraudulent investing scam that promises high rates of return at little risk to investors. the scheme generates returns for older investors by acquiring new investors. this scam actually yields the promised returns to earlier investors, as long as there are more new investors. the Ponzi scam is named after Charles Ponzi, a clerk in Boston who first orchestrated such a scheme in 1919. +++++++ PROFIT AND LOSS ACCOUNT: a report of a company's profit on the sale of their goods or the provision of their service over a trading period, normally one year. +++++++ RISK: the chance of things not turning out as expected. risk taking lies at the heart of capitalism and is responsible for a large part of the growth of an economy. +++++++ SUBPRIME LENDING: a general term that refers to the practice of making loans to borrowers who do not qualify for market interest rates because of problems with their credit history. subprime loans or mortgages are risky for both creditors and debtors because of the combination of high interest rates, bad credit history, and murky financial situations often associated with subprime applicants. +++++++