How Stock Market Works!

BSE Sensex money matters

Just dont find enuf mind to post something, so thought I will share something that came by an Email today.

The Stock Market simply illustrated … is there a lesson here?

The Stock Market
The Stock Market

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for 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.

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!!!!

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7 Comments
  1. […] has to be one of the worldโ€™s greatest paradoxes.Iโ€™m going to let you in on a secret! Itโ€™s going to sound like a strange claim, but nobody who un…ee index funds. If I died today, and if that money was just allowed to grow over time, it would beat […]

  2. jj says

    LOL. Funny except for the fact that it’s overly cynical. I don’t dabble in stock markets though

    1. Hemal Shah says

      Yeah!

      Welcome to my Blog ๐Ÿ™‚ and thanks for the comments.

  3. Anshul says

    Too Good ๐Ÿ™‚

    1. Hemal Shah says

      thank you Anshul! welcome to my blog ๐Ÿ™‚

  4. pramod says

    we are all monkeys in stock markets. and later become asses. you can see this ass who is writing this comment right now.
    excellently placed.
    i ‘ve been a leading stock broker of the 90’s so I ‘ve seen and played the game .
    no words can better explain it.

    1. Hemal Shah says

      ๐Ÿ˜€ hehe promod.. i didnt knew were into stock broking

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