A Better Understanding How The Share Market 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 into

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 monkeys at $20 for each.

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 increased to $25 each, and

the supply of monkeys became so small that it was an effort to even

find 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, 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, only monkeys everywhere!

 

 

Now you have a better understanding of how Wall Street works.