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Tuesday, August 01, 2006

The Philosophy of Stock Market....... too Good

Stock market simplified......!!!!

Once upon a time, in a village a man appeared who announced to the
villagers that he would buy monkeys for Rs. 10. The villagers seeing
that
there were many monkeys went out in the forest and started catching
them.

The man bought thousands at 10 and as supply started to diminish and
villagers started to stop their effort he announced that now he would
buy
at 20 rupees. This renewed the efforts of the villagers and they started
catching mon keys again. Soon the supply diminished even further and
people
started going back to their farms.

The offer rate increased to 25 and the supply of monkeys became so 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 the man.

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 comes back, you can sell it to him for 50.

The villager squeezed up with all their saving to buy the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!
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