Stock Market....Explained With Very Good Example

Stock Market....Very very good example

*Once upon a time in a Indian village, a Bhaniya gentleman appeared and
Announced to the villagers that he would buy monkeys for Rs. 10/-**

The villagers seeing that there were many monkeys around, went out to the
Forest and started catching them.

The Bhaniya gentleman bought thousands at Rs. 10/- and as supply started to
Diminish, the villagers stopped their effort. He further announced that he
Would now buy at Rs. 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 Rs. 25/- and the supply of monkeys
Became so little that it was an effort to even see a monkey, let alone catch
It!

The Bhaniya gentleman now announced that he would buy monkeys at Rs50!
However, since he had to go to the city on some business, his maharashtrian
Assistant would now buy on behalf of him.

In the absence of the Bhaniya gentleman, the marathi 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 Rs. 50/-

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the Bhaniya nor his assistant, only monkeys
Everywhere!! !

**Welcome to the 'Stock' Market *