Once upon a time in a village, a man announced to
the villagers that he would buy monkeys for Rs 10. The
villagers, seeing that there were many monkeys around,
went out to the forest and started catching
The man bought thousands at Rs 10 and as supply started
to diminish, the villagers stopped their effort.
He further announced that he would now buy at
Rs20. 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 offer rate increased to Rs 25 and the supply of
monkeys became so little that it was an effort to even
see a monkey, let alone catch it!
The man now announced that he would buy monkeys at Rs
However, since he had to go to the city on some business,
his assistant would now 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 Rs
35 and when the man returns from the city, you can
sell it to him for Rs 50.
” The villagers squeezed up with all their savings and bought
all the monkeys.
Then they never saw the man nor his assistant, only
Welcome to the ‘Stock Market’