How the Stock Market Works

JohnW · 09-10-2008, 17:29

How the stock market works:

Once upon a time in a place overrun with monkeys, 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,
they became harder to catch, so the villagers stopped their effort.

The man then announced that he would now pay $20 for each one. This
renewed the efforts of the villagers and they started catching monkeys
again. But soon the supply diminished even further and they were ever
harder to catch, so people started going back to their farms and
forgot about monkey catching.

The man increased his price to $25 each and the supply of monkeys
became so sparse that it was an effort to even see a monkey, much
less catch one.

The man now announced that he would buy monkeys for $50! However,
since he had to go to the city on some business, his assistant would
now buy on his behalf.

While the man was away the assistant told the villagers. 'Look at
all these monkeys in the big cage that the man has bought.
I will sell them to you at $35 each 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 and once again there
were monkeys everywhere.

Now you have a better understanding of how the stock market works.

Benipete · 09-10-2008, 19:34

Does the same rule apply to SEALS

jambutty · 10-10-2008, 18:06

Quote:

Originally Posted by JohnW

How the stock market works:

Once upon a time in a place overrun with monkeys, 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,
they became harder to catch, so the villagers stopped their effort.

The man then announced that he would now pay $20 for each one. This
renewed the efforts of the villagers and they started catching monkeys
again. But soon the supply diminished even further and they were ever
harder to catch, so people started going back to their farms and
forgot about monkey catching.

The man increased his price to $25 each and the supply of monkeys
became so sparse that it was an effort to even see a monkey, much
less catch one.

The man now announced that he would buy monkeys for $50! However,
since he had to go to the city on some business, his assistant would
now buy on his behalf.

While the man was away the assistant told the villagers. 'Look at
all these monkeys in the big cage that the man has bought.
I will sell them to you at $35 each 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 and once again there
were monkeys everywhere.

Now you have a better understanding of how the stock market works.

In other words the stock market is one huge gambling arena and as we all know in the gambling world there are winners and losers.

Benipete · 10-10-2008, 18:45

Of course it would all depend on how many were sold in the first,second and third transactions and indeed how many in the second and third transaction had been purloined from the first transaction and resold back to the buyer of the first transaction.

You may fall for it in the great US of A but I grew up for a while in Liverpool.