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How the stock market works! Monkies!


Guest chris_mac

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Guest chris_mac

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 for a monkey.

 

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 small that it was an effort to even find 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 all their savings and bought all the monkeys.

 

They never saw the man nor his assistant again, only monkeys everywhere!

 

 

Now you have a better understanding of how the stock market works!!

 

 

Chris Mac

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