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HOW THE STOCK MARKET WORKS
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 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 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 or his assistant ever again, only monkeys everywhere!
Now you have a better understanding of how the stock market works.
How the bail out works
Young Chuck moved to Texas and bought a Donkey from a farmer for $100. The farmer agreed to deliver the Donkey the next day.
The next day he drove up and said, 'Sorry son, but I have some bad News, the donkey died.' Chuck replied, 'Well, then just give me my money back.' The farmer said, 'Can't do that. I went and spent it already.'
Chuck said, 'Ok, then, just bring me the dead donkey.' The farmer asked, 'What ya gonna do with him? Chuck said, 'I'm going to raffle him off.' The farmer said You can't raffle off a dead donkey!' Chuck said, 'Sure I can. Watch me. I just won't tell anybody he's dead.' A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?'
Chuck said, 'I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $998.' The farmer said, 'Didn't anyone complain?'
Chuck said, 'Just the guy who won. So I gave him his two dollars back.'
Chuck now works for the Goldman Sachs
HOW THE STOCK MARKET WORKS
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 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 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 or his assistant ever again, only monkeys everywhere!
Now you have a better understanding of how the stock market works.
How the bail out works
Young Chuck moved to Texas and bought a Donkey from a farmer for $100. The farmer agreed to deliver the Donkey the next day.
The next day he drove up and said, 'Sorry son, but I have some bad News, the donkey died.' Chuck replied, 'Well, then just give me my money back.' The farmer said, 'Can't do that. I went and spent it already.'
Chuck said, 'Ok, then, just bring me the dead donkey.' The farmer asked, 'What ya gonna do with him? Chuck said, 'I'm going to raffle him off.' The farmer said You can't raffle off a dead donkey!' Chuck said, 'Sure I can. Watch me. I just won't tell anybody he's dead.' A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?'
Chuck said, 'I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $998.' The farmer said, 'Didn't anyone complain?'
Chuck said, 'Just the guy who won. So I gave him his two dollars back.'
Chuck now works for the Goldman Sachs
