How the Stock Market Works

Once upon a time, a well-dressed man came to town, settled into the only hotel and put a short announcement in the only page of the only newspaper reading that he was willing to pay $10 for a monkey.

The peasants knew the forest was full of monkeys and rushed to hunt them. The man bought, as promised, hundreds of monkeys for $10 each. Given that there were very few monkeys left in the forest and it was hard to hunt them, the peasants lost interest, so the man offered $20, and they went back to the forest.

Again, the monkeys were running out and the man raised the offer to $25, making the peasants return to the forest and hunt the few monkeys left until it was almost impossible to find one.

At this point, the man offered $50 for each monkey. He had some unfinished business to do in the city, so he left his assistance in charge of buying monkeys.

Once the man traveled to the city, his assistant addressed to the peasants saying: “Look at this cage full of thousands of monkeys that my boss bought for his private collection. I am offering you the monkeys for $35 each, so when my boss returns from the city, you can sell them for $50”.

The peasants gathered all their savings, bought the thousands of monkeys in the cage and waited for the boss to return. Since then, they have seen neither the assistant nor the boss. All they saw was a cage full of monkeys, bought with his lifetime savings…

Before investing in the stock market, learn the basics of stock market trading at Green Market 420.