The stockmarket and Monkey Business

[sgmystique]

Got this one from http://aspire.sharesinv.com/41310/stock-...ake-money/

Could not help laughing and sharing with fellow Valuebuddies. Hope none of us are in the business of purchasing monkeys 


A lot of monkeys live near a village.

One day, a merchant came to the village to buy these monkeys! He announced that he will buy the monkeys at $100 each. The villagers thought that this man is mad. They thought how would anybody buy stray monkeys at $100 each?

Still, some people caught some monkeys and gave it to this merchant and the latter gave $100 for each monkey.

The news spread like wildfire and people caught monkeys and sold it to the merchant. After a few days, the merchant announced that he will buy monkeys at $200 each.

The other lazy villagers also ran around to catch the remaining monkeys! They sold them at $200 each.

Then the merchant announced that he will buy monkeys at $500 each! The villagers started to lose sleep! They managed to catch six or seven monkeys, which was all that was left and got $500 each.

The villagers then waited anxiously for the next announcement.

Then the merchant announced that he is going home for a week. And when he returns, he will buy more monkeys at $1000 each! He asked his employee to take care of the monkeys he bought. The employee was left alone to take care of all the monkeys in a cage and the merchant went home.

The villagers were very sad as there were no more monkeys left for them to sell it at $1000 each. Then the employee told them that he will sell some monkeys at $700 each secretly.

This news spread like fire. Since the merchant buys monkey at $1000 each, there would be a $300 profit for each monkey.

The next day, villagers made a queue near the monkey cage. The employee sold all the monkeys at $700 each.

The rich bought monkeys in big lots. The poor borrowed money from money lenders to jump on the monkey hype train too! The villagers took care of their monkeys and waited for the merchant to return.

But nobody came! Then they ran to the employee, but he had already left too!

The villagers then realised that they have bought the useless stray monkeys at $700 each and were unable to sell them!


This business is known as the STOCK MARKET! It made a lot of people bankrupt and a few people filthy rich in this monkey business. That’s how the stock market works…

[jenson]

very well written story about stock markets! [CLAPPING HANDS SIGN]

Sent from my SM-N910G using Tapatalk

[chialc88]

Yes!

This stories was actually from India.

Coincidentally, a few weeks later, a similar things happen in a far away village. 

Day 1, when a stranger appears, he offers $50 for a goat.

Some villager think it's a good deal and sold him some goats.

Day 2, the buying price go up to $100 and more villager sold him goats.

Day 3,  the price escalate to $200 and created a big hoo-ha.
All the villagers laughing to the bank.

When Day 4 comes, all the villagers can not laugh.

Another stranger appears and offer to buy the goat at S$300
but the first stranger did not sell.

Day 5, 2nd stranger offer to buy at S$600 and of course
all the villagers was shocked to hear that first guy did not sell.

They go mad and eventually someone figured out that 
there must be something in the goat that caused the first guy
to hold on tight to the goat.

Then, they offered to buy S$700 to buy the goat from the first guy.
And, of course, all the villagers got their wishes come true.

And, of course, what do you expect?
Both strangers disappear.

The villagers is still holding on to the goat and wondering
who will buy off these *special* goat.

For S$1 million, what's the diff between holding a monkey vs holding a goat?

meanwhile, listen carefully to Madonna "live to Tell"


Love Compassion

[CY09]

If it is a goat capable of producing $100 worth of milk every year while only needing $20 worth of grass to upkeep. The story changes

[Big Toe]

With globalization, it would never happen.
There would be too many monkeys and goats procured from cheap sources. The merchant would not be able to purchase all of them. Unless of course the monkeys are scarce/very limited and endangered. Which would make the trade illegal to begin with.

[edragon]

Supply and demand but in this case, demand and supply. It will fail if the demands cannot saturate the supply.
If there were thousands of monkeys and goats already kept in cages for food in a nearby village.

However, in real life, one can look for the latest show playing in the local scene easily by ........ "this word is banned in this value forum"

[specuvestor]

I think the goat story is incomplete on how the market works. It should be that the 2nd stranger said he heard that these special goats when eaten special grass will produce oil instead of milk

My guess is that the diff between holding the monkey and the goat is that you were sold a monkey by a broker and sold a goat by an investment banker

[chialc88]

Nice try.

Any one else? 

What's the diff between holding a goat and a monkey?

[Temperament]

Nice try.

Any one else? 

What's the diff between holding a goat and a monkey?

The difference is who holds the monkey makes money-(scammer) and who holds the goat lost money (scammed victim)

And the villagers are being held as monkeys all along.

[chialc88]

Gratitude!
Education for the villager (+ everyone too):
 

Love Compassion