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Why Stock Market Sucks

Updated on January 28, 2013

The story of stock market is explained with the help of this funny story. Once upon a time in a village, a business man arrived to announce that he would buy monkeys from any one for half a dollar each.

The poor villagers thought the best profession - catching monkies in a monkey surplus village - had just arrived. They went around catching monkeys and selling it to the man that they thought was a fool. The man bought thousands of monkey for half a dollar each and soon the supply of monkeys dwindled. The monkeys became rare and the villagers stopped their effort. Catching a monkey was a painful and difficult ordeal now.

The man raised the price this time to a dollar for each monkey. The monkey business flourished again. The monkeys were getting rarer now. Catching them was a waste of time for the wage offered. No wonder, people started going back to their farms.

The offer rate was hiked again. The cycle of business took its turn even as the supply of monkeys turned so fewer that one barely saw them, let alone catch!

The price of each monkey was hiked considerably this time - dollar 5 from dollar 1, but his assistant was there to manage the business on his behalf as he was leaving for an urgent job in the city.

The monkeys were almost extinct, so the assistant offered the villagers a proposal. He said, "Look here is my offer. These are the monkeys in the big cage that my boss has bought from you for less than a dollar to a dollar each. My price for each of these monkeys is dollar 3. You can buy these monkey from me and sell them at a huge profit at dollar 5."

The villagers spent all their savings, begged and borrowed and finally bought all the monkeys.

The man and his assistant were never to be seen in the village again!!! That's what stock market does to your shares.

Welcome to the "Stock" Market!!!!!


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      serenitystocks.com 

      5 years ago

      The villagers are what we call speculators, people who buy stocks only with the intention of selling them at a higher price without actually looking at what the stock is truly worth. These are people who are gambling on stocks for quick profits without doing much research, and there are plenty of companies out there selling them monkeys :)

      Investors buy good, well-researched stocks and hold on to them. Investors look at stocks as growing, dividend-paying assets, and not as a shortcut to overnight riches.

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      Benjamin 

      7 years ago

      It's pretty obvious that the markets need to be pegged to business valuations. Free markets are encouraged by crooks.

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