Lessons from the stock market

I got this forwarded in the email and thought it was really funny and educational. Enjoy it.

Once upon a time, in a village a man appeared and announced to the villagers that he would buy monkeys for $10. The villagers, seeing that there were many monkeys, went out in the forest and started catching them.

The man bought thousands at $10 and as supply started to diminish and villagers started to stop their effort he announced that now he would buy at $20. This renewed the efforts of the villagers and they started catching moneys 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 rare so 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 the man.

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 comes back, you can sell it to him for $50".

The villager squeezed up with all their saving to buy the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!