Welcome to The stock market

CA Pallav Singhania (IT System Auditor) (33262 Points)

24 December 2011  

Once upon a time in a village, a man appeared and announced to the

Villagers that he would buy monkeys for Rs10. The villagers seeing that

there were many monkeys around, went out to the forest and started

catching them. The man bought thousands at Rs10 and as supply started

to diminish, the villagers stopped their effort.  

He further announced that

he would now buy at Rs20. 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 rate

increased to Rs25 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 Rs50!

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 Rs35 and when the man returns from the city,

you can sell it to him for Rs50.' The villagers squeezed up with all

their savings to buy the monkeys. Then they never saw the man nor his

assistant, only monkeys everywhere!! !! -

Welcome to the Stock Market!!!!!