Day: October 23, 2008

  • The Monkey Tale

     

     

    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 now buy on his behalf.


    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 their savings and
    bought all the monkeys.
    Then they never saw the man nor his
    assistant ever again, only monkeys
    everywhere!

    Now you have a better understanding of how
    the stock market works.

     

     

  • Thursday's Child

     

     

     

    I was born very early on a Friday morning, but I know the feeling.