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
Wednesday, June 11, 2008
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