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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » How the stock market works?

How the stock market works?

+6
banarahu
gfte
rosei
Kaush
san1985
StocksWatch
10 posters

Go down  Message [Page 1 of 1]

1How the stock market works? Empty How the stock market works? Wed Mar 23, 2011 10:30 pm

StocksWatch


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Once upon a time in a village, 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, 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 increased to $25 each 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 them to him for $50 each.”

The villagers rounded up with all their savings and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!

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

Are you left with monkeys?

2How the stock market works? Empty Re: How the stock market works? Thu Mar 24, 2011 12:15 am

san1985

san1985
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Good one bro...
First saw this on investnow.lk couple of months back....
Couldnt remember who posted it...

3How the stock market works? Empty Re: How the stock market works? Thu Mar 24, 2011 8:41 am

Kaush


Equity Analytic
Equity Analytic

Ha ha good one. Keep posting stories like this bro.........

4How the stock market works? Empty Re: How the stock market works? Thu Mar 24, 2011 8:52 am

rosei


Stock Analytic
Stock Analytic

very well said, good for beginners to understand the reality

5How the stock market works? Empty Monkey Thu Mar 24, 2011 8:53 am

gfte

gfte
Senior Equity Analytic
Senior Equity Analytic

Monkey=W***.*0000

6How the stock market works? Empty Re: How the stock market works? Thu Mar 24, 2011 9:22 am

banarahu

banarahu
Manager - Equity Analytics
Manager - Equity Analytics

I like this part most...

"The villagers rounded up with all their savings and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!"

this what always happen to us by under-pushing of billionaires... Evil or Very Mad

7How the stock market works? Empty Re: How the stock market works? Thu Mar 24, 2011 1:38 pm

sugandika

sugandika
Equity Analytic
Equity Analytic

gfte wrote:Monkey=W***.*0000
lol! lol!

8How the stock market works? Empty Re: How the stock market works? Thu Mar 24, 2011 1:40 pm

sugandika

sugandika
Equity Analytic
Equity Analytic

@StocksWatch - Great story bro. It shows the reality of the market... We all have be very careful when selecting stocks and not to be trapped there.

9How the stock market works? Empty Re: How the stock market works? Fri Mar 25, 2011 5:07 pm

MoneyMaker

MoneyMaker
Senior Equity Analytic
Senior Equity Analytic

Super description...

10How the stock market works? Empty Re: How the stock market works? Sun Mar 27, 2011 12:55 pm

silentsahan

silentsahan
Senior Equity Analytic
Senior Equity Analytic

Superb bro superb

Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy Very Happy

11How the stock market works? Empty Re: How the stock market works? Fri Aug 26, 2011 7:46 pm

2011_NewComer

2011_NewComer
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

StocksWatch wrote:Once upon a time in a village, 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, 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 increased to $25 each 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 them to him for $50 each.”

The villagers rounded up with all their savings and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!

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

Are you left with monkeys?

Came across a video of this story..thought of sharing Smile

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