Friday, January 25, 2008

Stock Markets -- On a lighter note

How Stock Market Works!!!!!

Once upon a time in a village, a man appeared and announced to thevillagers that he would buy monkeys for Rs10.The villagers seeing that there were many monkeys around, went out to theforest and started catching them.The man bought thousands at Rs10 and as supply started to diminish, thevillagers stopped their effort. He further announced that he would now buyat Rs20.

This renewed the efforts of the villagers and they started catching monkeys again.Soon the supply diminished even further and people started going back totheir farms. The offer rate increased to Rs25 and the supply of monkeysbecame so little that it was an effort to even see a monkey, let alonecatch it!The man now announced that he would buy monkeys at Rs50! However, since hehad to go to the city on some business, his assistant would now buy onbehalf of him.In the absence of the man, the assistant told the villagers. Look at allthese monkeys in the big cage that the man has collected. I will sell themto you at Rs35 and when the man returns from the city, you can sell it tohim for Rs50."The villagers squeezed up with all their savings and bought all themonkeys.Then they never saw the man nor his assistant, only monkeys everywhere!! !Welcome to the "Stock" Market!!!!!

(have received this as a forwarded mail....too gud)

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