This is how the stock market really works:
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 man then increased the offer to buy monkeys for $25 each.
The supply of monkeys disappeared so that it was an effort to even see a monkey, let alone catch it.
So the man announced that he would now buy monkeys at $50 each!
However, the man said he had to go to the city on some business, and his assistant would buy monkeys for him.
When the man was gone, the assistant told the villagers:
“Look at all these monkeys in the big cage that the man has bought from you. I will sell you all the monkeys in the cage for $35 each. When the man returns from the city, you can sell the monkeys back to him for $50 each. We both make money, and the man will never have to know.”
The villagers scraped together all the money they had saved from selling monkeys to the man, and bought all the monkeys in the cage from the assistant for $35 each.
The villagers never saw the man or his assistant again, but they got all their monkeys back!
Source: Unknown
Happy Friday!
