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How the Stock Market Works


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How the Stock Market Works

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  #1 (permalink)
 Mickey Caine 
Kent, England
 
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Once upon a time in a place overrun with monkeys, 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, they became harder to catch, so the villagers stopped their effort. The man then announced that he would now pay 20 for each one.

This renewed the efforts of the villagers and they started catching monkeys again. But soon the supply diminished even further and they were ever harder to catch, so people started going back to their farms and forgot about monkey catching.

The man increased his price to 25 each and the supply of monkeys became so sparse that it was an effort to even see a monkey, much less catch one.

The man now announced that he would buy monkeys for 50! However, since he had to go to the city on some business, his assistant would now buy on his behalf.

While the man was away, the assistant told the villagers, 'Look at all these monkeys in the big cage that the man has bought. 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 nor his assistant again and once again there were monkeys everywhere.

Now you know how the stock market works.

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  #3 (permalink)
 MNSTrading 
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worked out for the monkeys.


Zhu-Zhanji-Gibbons-at-Play

Coming, they can't be denied. Going, they can't be detained.
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  #4 (permalink)
 deaddog 
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You have to realize that the stock market is not there for you to make money. It's there for the people who run the market to make money.

Not unlike any other market, be it cars or food or clothing, you might be able to find an opportunity to take advantage of the way things are run, but the market was never intended to make money for the customer.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #5 (permalink)
haroldjohnson
Ohio, United States
 
 
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Thanks for explaining how the stock market works in easy words

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  #6 (permalink)
yusscalper
London, United Kingdom
 
 
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Was expecting a complicated explanation but daaamn that's nicely done.

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  #7 (permalink)
MarsIll
Savannah, GA
 
 
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LOL, that's kind of messed up how the man and his assistant worked that out. Does the market really work like that? Who's the man? and who's the assistant?

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