Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $ 100 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 for $ 100 and as supply started to diminish, the villagers stopped their effort.
Now the man further announced that he would buy monkeys for $ 200.
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 work on their farms.
Next, the mysterious man increased his offer to $ 250 for each money, and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
Now the man now announced that he was going to negotiate a large order for monkeys and that we were willing to buy monkeys for $ 500 each!
However as he had to go to the city for the business, his assistant would now buy monkeys on his behalf.
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 $ 350 each and when the man returns from the city, you can sell the same to him for $ 500 each.”
The villagers got all their savings, borrowed money from friends and relatives and bought all the monkeys they could.
Thereafter, then they never saw the mysterious man or his assistant, only monkeys were everywhere!
That’s the stock market!!!
