Wednesday, August 5, 2009

For those walking on Dalal Street...

Hi Friends,

As all our 1st Sem Students have completed their Capital market course, everybody wants to jump into the arena of trading. Even Finance club guys have started trading competition among groups. Now a day’s people are seen with their laptops ON in their free time and instead of orkuting and chatting they are playing the "MoneyBhai.Moneycontrol" Game.

So for beginners in the stock market, below text is not any other trading tip but a simple story which should be learned by heart before entering this Bhool Bhulaiyya.

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs10. The villagers seeing that there were many monkeys around, went out to the forest and started catching them. The man bought thousands at Rs10 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 Rs25 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 Rs50! 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 Rs35 and when the man returns from the city, you can sell it to him for Rs50." The villagers squeezed up with all their savings and bought all the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!!!

Welcome to the "Stock" Market!!!!

Kisan Agrawal (09-11)

2 comments:

vivek said...

Glimpse of Stock Market through Monkey's..........good one Kisan, Keep it up - BaBa

babuagri said...

Imagine if monkeys have some worth atleast Rs.35/-......in reality in stock market the monkeys has some worth....so the trading goes on....
rambabu yerra