The Stock Market
The Stock Market simply illustrated ... Is there a lesson here?
Once upon a time in a village, a man appeared and announced
to the villagers that he would buy monkeys for Rs10.
The villagers seeing that there were many monkeys around,
went out to the forest and started catching them.
The man bought thousands at Rs10 and as supply started to
diminish, the villagers stopped their effort. He further announced
that he would now buy at Rs20.
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 Rs25 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 Rs50!
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 Rs35 and when the man
returns from the city , you can sell it to him for Rs50."
The villagers squeezed up with all their savings to buy the
monkeys.
Then they never saw the man nor his assistant, only
monkeys everywhere!!!!
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