A little light relief, as mailed into this humble corner of cyberspace by reader ‘JG’:
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A few years ago Larry approached his Guadalajara neighbours and announced that he would buy monkeys for $10 each.The
neighbours, seeing that there were many monkeys around, went out to the
forest and started catching them. Larry bought thousands at $10 and, as
supply started to diminish, the neighbours stopped their effort.He
next announced that he would now buy monkeys at $20 each. This renewed
the efforts of his neighbours 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 scarce
it was an effort to even find a monkey, let alone catch it! Larry now
announced that he would buy monkeys at $50 each! However, since he had
to go into town on some business, Darren, his son, would buy on his
behalf.In
the absence of Larry, Darren told the neighbours: “Look at all these
monkeys in the big cage that my dad has already collected. I will sell
them to you at $35 and when Dad 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 Larry or Darren again, only lots and lots of monkeys!Now you have a better understanding of how the stock market works.
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True.