Norway's Giant Fund Buys $1.2 Billion in SpaceX Shares
Norges, the world's biggest sovereign wealth fund, has bought $1.2 billion in shares of SpaceX, the private space company. Norges is owned by Norway and invests money from the country's oil income.
The fund has had a very strong six months, making a profit of 160 billion euros. This is one of the largest profits the fund has ever reported in such a short time.
Part of this money benefits the citizens of Norway. The fund is designed to support the country's economy and public spending, so strong results can help fund public services.
The value of the fund's shares has risen by 16% recently, showing strong growth. Buying into SpaceX is seen as a bold move, since the company is privately held and does not sell shares on public markets like most firms.
SpaceX makes rockets and spacecraft and is one of the most valuable private companies in the world. Sovereign wealth funds rarely get the chance to invest directly in such companies, which makes this deal notable.
Besides SpaceX, Norges also holds shares in many companies listed on stock markets around the world, including Italy's main exchange, Piazza Affari in Milan. The fund has identified its 10 most important holdings there, showing how widely it spreads its investments across different countries and industries.
Vocabulary10 words
- sovereign wealth fund
- money a country saves and invests for the future
- profit
- money gained after all costs are paid
- shares
- small parts of ownership in a company
- privately held
- not sold openly to the public
- Piazza Affari
- Italy's main stock market, in Milan
- investments
- money put into something to gain more later
- public services
- things a government gives to people, like schools
- growth
- getting bigger or increasing in value
- holdings
- things a fund or person owns
- notable
- important enough to be noticed
Quiz
Answer key
1. SpaceX 2. 160 billion euros 3. Because SpaceX is a private company that doesn't sell shares publicly
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Norges, the world's biggest sovereign wealth _____, has bought $1.2 billion in shares of SpaceX.
Norges is owned by _____ and invests money from the country's oil income.
The fund has had a very strong six months, making a _____ of 160 billion euros.
Part of this money benefits the _____ of Norway.
The value of the fund's shares has risen by _____% recently.
Buying into SpaceX is seen as a bold move, since the company is _____ held.
SpaceX makes rockets and spacecraft and is one of the most _____ private companies in the world.
Sovereign wealth funds rarely get the chance to invest directly in such _____.
Norges also holds shares in companies listed on Italy's main exchange, _____ in Milan.
The fund has identified its 10 most important _____ there.
Discussion questions
- Why might a sovereign wealth fund want to invest in a private company like SpaceX?
- How do you think a country's citizens benefit when its sovereign wealth fund makes big profits?
- What risks might come with investing in a company that isn't listed on public stock markets?
- Do you think it's a good idea for a country to invest its oil money in companies like SpaceX? Why or why not?