Read it twice - How the stock market works.

Discussion in 'The Watercooler' started by Star*, Oct 10, 2008.

  1. Star*

    Star* call 911........call 911

    *disclaimer* IF THE WORDS MONKIES OR VILLAGERS MAY BOTHER YOU. OR YOU ARE A MONKEY OR A VILLAGER - CONSIDER YOURSELF WARNED.

    :tongue:Once upon a time in a place overrun 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.
     
  2. witzend

    witzend Well-Known Member

    Yep...
     
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