[Dialogue] Fw: [MAPN] How the stock market works
Colleen Smith
smith_journey at yahoo.com
Tue Oct 7 12:14:27 EDT 2008
---A little black humor. or cynacism or reality. Take your pick.
Colleen Smith
Moab, Utah
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 offer increased to $25 each and 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
n 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 with all their savings and 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.
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