Once upon a time, in a village, 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, the
villagers stopped their effort.
He further announced that he would now buy at $20 for a monkey.
This renewed the efforts of the villagers and they started catching
Soon the supply diminished even further and people started going back to
The offer increased to $25 each, and the supply of monkeys became so small
that it was an effort to even find a monkey, let alone catch it!
The man now announced that he would buy monkeys at $50!
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
told the villagers, "Look at all these monkeys in the big cage that the
man has collected. I will sell them to you at $35, 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, only monkeys everywhere!
Now you have a better understanding of how the stock market works.
Too true to be funny regards