Monkeys

Once upon a time in a village, a man appeared and announced to thevillagers 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 thousandsat $10 and as supply started to diminish, the villagers stoppedtheir effort.

He further announced that he would now buy at $20.This renewed the efforts of the villagers and they started 
catchingmonkeys again. Soon the supply diminished even further and people started goingback to their farms.

The offer increased to $25 each and the supplyof monkeys became so little that it was an effort to even see amonkey, let alone catch one.

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

In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. 
I will sell them to you at $35 and when the man returns from the city,you can sell them to him for $50 each."The villagers roundedç
up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant again, onlymonkeys everywhere! 

Now you have a better understanding of how the stock market works.