Stock Market – Explained with monkeys!

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10.

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 rate increased to $25 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 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 it to him for $50.”

The villagers squeezed up with all their savings to buy the monkeys.

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

2 thoughts on “Stock Market – Explained with monkeys!

  1. paul

    seems to explain the housing market in the UK too. also reminds me of the efforts to get african farmers to use fertilizer and rip them off.

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