Tuesday, October 30, 2007
Stock Market Illustration :: Too Hilarious !!
The [color:8082=orange ! important][color:8082=orange ! important]Stock [color:8082=orange ! important]Market simply illustrated. ... is there a lesson here?
Once upon a time in a village, a man appeared and announced to the villagers that he would buy [color=orange][color:8082=orange ! important][color:8082=orange ! important]monkeysfor 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. [color:8082=#006600:8082]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 Market!!!!!