Once upon a time in a place over-run with monkeys, 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, they became harder to catch, so the villagers
Stopped their effort.
The man then announced that he would now pay $20 for each one. This
renewed The efforts of the villagers and they started catching monkeys
again. But Soon the supply diminished even further and they were ever
harder to catch, So people started going back to their farms and forgot
about monkey Catching. The man increased his price to $25 each and the
supply of monkeys Became so sparse that it was an effort to even see a
monkey, much less catch One.
The man now announced that he would buy monkeys for $50! However, since he
Had to go to the city on some business, his assistant would now buy on his
Behalf.
While the man was away the assistant told the villagers. 'Look at all
these Monkeys in the big cage that the man has bought. I will sell them to
you at $35 each and when the man returns from the city, you can sell them
to him For $50 each.'
The villagers rounded up all their savings and bought all the monkeys.
They Never saw the man nor his assistant again and once again there were
monkeys
Everywhere.
Now you have a better understanding of how the stock market works.
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, they became harder to catch, so the villagers
Stopped their effort.
The man then announced that he would now pay $20 for each one. This
renewed The efforts of the villagers and they started catching monkeys
again. But Soon the supply diminished even further and they were ever
harder to catch, So people started going back to their farms and forgot
about monkey Catching. The man increased his price to $25 each and the
supply of monkeys Became so sparse that it was an effort to even see a
monkey, much less catch One.
The man now announced that he would buy monkeys for $50! However, since he
Had to go to the city on some business, his assistant would now buy on his
Behalf.
While the man was away the assistant told the villagers. 'Look at all
these Monkeys in the big cage that the man has bought. I will sell them to
you at $35 each and when the man returns from the city, you can sell them
to him For $50 each.'
The villagers rounded up all their savings and bought all the monkeys.
They Never saw the man nor his assistant again and once again there were
monkeys
Everywhere.
Now you have a better understanding of how the stock market works.
