You Are Kidding!!!

Once upon a time in a place overrun with monkeys, 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, 

they became harder to catch, so the villagers stopped their effort.

 

The man then announced that he would now pay $20 for each one. This 

renewed the efforts of the villagers and they started catching 

monkeys again. But soon the supply diminished even further and they 

were ever harder to catch, so people started going back to their 

farms and forgot about monkey catching.

 

The man increased his price to $25 each and the supply of monkeys 

became so sparse that it was an effort to even see a monkey, much 

less catch one.

 

The man now announced that he would buy monkeys for $50! However, 

since he had to go to the city on some business, his assistant would 

now buy on his behalf.

 

While the man was away the assistant told the villagers…’Look at 

all these monkeys in the big cage that the man has bought. I will 

sell them to you at $35 each and when the man returns from the city, 

you can sell them to him for $50 each.’

 

The villagers rounded up all their savings and bought all the 

monkeys. They never saw the man nor his assistant again and once 

again there were monkeys everywhere.

 

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