Philosophy of the Stock Market

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

The man bought thousands at Rm 10 and as supply started to diminish and villagers started to stop their efforts, he announced that now he would buy them at Rm 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 Rm 25 and the supply of monkeys became 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 Rm 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 the monkeys in the big cage that the man has collected. I will sell them to you at Rm 35 and when the man comes back, you can sell them to him for Rm 50 each."

The villagers queued up with all their savings to buy the monkeys.

After that, neither the assistant nor the businessman could be found anywhere but the monkeys were everywhere!