Tuesday, November 11, 2008

Welcome to the Stock Market


The Stock Market simply illustrated. ...

Once upon a time in a village, a man appeared and announced to the
villagers that he would buy monkeys for $10. The villagers seeing that
there were many monkeys around, went out to the forest and started catching
them. The man bought thousands at $10 and as supply started to diminish,
the villagers stopped their effort. He further announced that he would now
buy at $20. This renewed the efforts of the villagers and they started
catching monkeys again. Soon the supply diminished even further and people
started going back to their farms. The offer rate increased to $25 and the
supply of monkeys became so little that it was an effort to even see a
monkey let alone catch it.

The man now announced that he would buy monkeys at $50! However, since he
had to go to the city on some business, his assistant would now buy on
behalf of him. In the absence of the man, the assistant told the villagers.
Look at all these monkeys in the big cage that the man has collected. I
will sell them to you at $35 and when the man returns from the city, you
can sell it to him for $50." The villagers squeezed up with all their
savings to buy the monkeys. Then they never saw the man nor his assistant,
only monkeys everywhere!

Welcome to the Stock Market!

Labels: , ,

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home