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Monday, 26 November, 2007

Monkey Business

Monkey Business

The other day, I had gone for a haircut. (For those of you who know me, THIS is not the joke!!!) Interestingly, the conversation out there was about the share prices, and which one is worth buying!

This reminded me of a nice little story, which I must share with all of you:

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs 10.

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

The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort.

Noticing this, he further announced that he would now buy at Rs 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 was again increased to Rs 100 and the supply of monkeys became so limited that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at Rs 500! 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 Rs 200 and when the man returns from the city, you can sell it to him for Rs 500." 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!!!!!