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WEEKEND SPECIAL - STOCKMARKET
1.       AlphaF
5677 posts
 16 Feb 2008 Sat 05:32 pm

Once upon a time in a village, a man appeared and announced to the
> villagers that he would buy monkeys for $10 each.
>
> 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 increased to $25 each 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 them to him for $50 each."
>
> The villagers rounded up with all their savings and bought all the
> monkeys.
>
> Then they never saw the man nor his assistant again, only monkeys
> everywhere!
>
> Now you have a better understanding of how the stock market works.

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