Once upon a time, a rich merchant named Joseph visited a village where he saw a lot of monkeys. Joseph announced in the village market that he would buy monkeys for $100 each. The villagers thought that the merchant to be insane how can anyone pay $100 for a monkey.
Yet, some villagers went into the forest to catch monkeys and started supplying them to the merchant, and Joseph paid $100 for each monkey. Soon, this news spread like wildfire then other villagers also started catching monkeys and supplying to the merchant. Joseph bought thousands of monkeys at $100 and as supply started to diminish and villagers started to stop their effort he announced that now he would buy at $150 each.
This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms. The offered rate increased to $250. The villagers start to lose sleep! They caught six or seven monkeys, which was all that was left and got $250 each.
Then Joseph announced that he had to go to his city for some work for a week and when he returned he would buy the monkeys at $500 each. Joseph asked his assistant Christopher to take care of all monkeys in the cage.
In the absence of Joseph, the assistant told the villagers- Look at all these monkeys in the big cage that the merchant has collected. I will sell them to you at $350 and when the man comes back you can sell them to him for $500. This news spread like fire. Since the merchant buys monkey at $500 each, there is a $150 profit for each monkey. Some villagers queued up with all their savings to buy the monkeys.
The villagers took care of their monkeys & waited for the merchant to return. But nobody came. Then they ran to the assistant but he has already left too.
Welcome to the 'Stock Market' !!
Moral: Wise up! Business is about being smart. It's all about being calculative and applying sense at the speed of thought.
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