PHILOSOPHY OF STOCK MARKET


This is How a Layman understands about the stock market

Once upon a time in a village a man appeared who announced to the villagers that he would buy monkeys for Rupees (Rs) 10. The villagers seeing that there were many monkeys went out in the forest and started catching them.

The man bought 1000 monkeys @ Rs 10 and as supply started to diminish and villagers started to stop their effort he announced that now he would buy @ Rs 20. This renewed the efforts of the villagers and they started catching moneys 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 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 50! However, since he had to go to the city on  some business his assistant would now buy on behalf of the man. 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 comes back you can sell it to him for 50."

The villagers queued up with all their saving to buy the monkeys. And then never did the villagers find the man not his assistant

Rs 50 Buyer was FII
Rs 35 Buyer was Finance Minister
And the rest all were.....??

If you could answer the above question

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