Thread: How It All Works

Once upon a time in a small 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 into the forest and started catching them. The man
bought thousands at $10 and the supply started to dwindle
and the villagers stopped their efforts.

The man mow announced he would buy monkeys at $20 each
so the villagers started catching monkeys again.

Soon the supply dwindled further and the villagers started
going back to their farms as it became harder and harder to
find a monkey.

The man now announced he would buy monkeys at $50 each
but as the man had to go to the city on some business, his
assistant would buy 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 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 or his assistent again!

You now have a better understanding of how the stock
exchange works.