Monkey Money... ( Archived) (7)

"Once upon a time a man appeared in a village 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 the supply started to diminish, the villagers stopped their effort.

The man then announced that he would now pay $20 for a monkey.

This renewed the efforts of the villagers and they started catching
monkeys again. Soon though, the supply diminished even further and people again started going back to their farms. 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 do the buying 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 $35, and when the man returns from the city, you can sell them to him for $50 each." So the villagers rounded up all their savings and bought all the monkeys.

They never saw the man nor his assistant again...

Now, boys and girls, you have a better understanding of how the stock market works...