Wednesday, June 11, 2008

The Stock Market - Monkey Business?

Monkey Business


Once upon a time in a village, a man appeared &

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, & started

catching them. The man bought thousands at $10 & as

the 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

& they started catching monkeys again. Soon the

supply diminished even further & people started going

back to their farms. The offer increased to $25 each &

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

$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 & when the man returns from the city, you can sell

them to him for $50 each."


The villagers rounded up with all their savings &

bought all the monkeys. Then they never saw the man

nor his assistant, only monkeys, everywhere!


Now you have a better understanding of how the stock

market works.

Happy Trading!

GreenRoomStocks.com