Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rupees 10 each...
The villagers, seeing that there were many monkeys around, went out to the forest and started catching them...
The man bought thousands of monkeys at Rupees 10 each, and as supply started to decrease, the villagers stopped their efforts...
Then, the man further announced that he would now buy each monkey for Rupees 20...
This renewed the efforts of the villagers and they started catching monkeys again, but soon, the supply decreased even further and people started going back to their farms...
This time, though the offer rate was increased to Rupees 30, 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 Rupees 60 each, however, since he had to go to the city on some business, his assistant would now buy them on behalf of him...
In the absense of the man, the assistant told the villagers, "Look at all these monkeys in these big cages here, that boss of mine has collected... I can sell them to you at Rupees 40 each, and when the man returns from the city, you can sell it to him for Rupees 60 each..."
The villagers squeezed up with all their savings and bought all the monkeys, and started waiting for the man to return...
But they never saw the man nor his assistant ever again, only monkeys everywhere...
Welcome to the stock market...
The villagers, seeing that there were many monkeys around, went out to the forest and started catching them...
The man bought thousands of monkeys at Rupees 10 each, and as supply started to decrease, the villagers stopped their efforts...
Then, the man further announced that he would now buy each monkey for Rupees 20...
This renewed the efforts of the villagers and they started catching monkeys again, but soon, the supply decreased even further and people started going back to their farms...
This time, though the offer rate was increased to Rupees 30, 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 Rupees 60 each, however, since he had to go to the city on some business, his assistant would now buy them on behalf of him...
In the absense of the man, the assistant told the villagers, "Look at all these monkeys in these big cages here, that boss of mine has collected... I can sell them to you at Rupees 40 each, and when the man returns from the city, you can sell it to him for Rupees 60 each..."
The villagers squeezed up with all their savings and bought all the monkeys, and started waiting for the man to return...
But they never saw the man nor his assistant ever again, only monkeys everywhere...
Welcome to the stock market...
:)
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