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Once upon a time in a village, a man announced to the
villagers that he would buy monkeys for $10.
The villagers
seeing 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. 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 $25 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 $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 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 $35 and when the man returns from the
city, you can sell to him for $50.'
The villagers
squeezed up with all their savings and bought all the
monkeys.
Then they never
saw the man nor his assistant, only monkeys everywhere!! !
Welcome to the 'Stock'
Market!!!!!
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