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Stock Market Theory

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  1. #1
    zenilshroff
    zenilshroff is offline Newbie

    Stock Market Theory

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    It is an old one but repeated one but really nice to read

    Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs10.

    The villagers seeing that there were many monkeys around, went out to the forest and started catching them.

    The man bought thousands at Rs10 and as supply started to diminish, the villagers stopped their effort.

    He further announced that he would now buy at Rs20. 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 Rs25 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 Rs50! 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 Rs35 and when the man returns from the city, you can sell it to him for Rs50."

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

    Welcome to the "Stock" Market...!!!!!

  2. #2
    anshul_101
    anshul_101 is offline Just in!

    Re: Stock Market Theory

    well it is trading...where they make fool to small investors..well this type manipulation happens in every field..nothing new in it

  3. #3
    nsebsetrend
    nsebsetrend is offline Just in!

    related story to satyam computers

    Really this story is related to satyam computers scandal a little bit. Now a days there is fear in investors . So they have to invest in reliable stocks.

    Regards
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