The Pig Story
Once upon a time in a village, a man appeared and announced to the villagers that he would buy PIGS for Rs. 10.
The villagers seeing that there were many PIGS around, went out,to the forest and started catching them. 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 Rs. 20. This renewed the efforts of the villagers and they started catching PIGS 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 PIGS became so little that it was an effort to even see a PIGS, let alone catch it!
The man now announced that he would buy PIGS at Rs. 50! 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 PIGS 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 PIGS. Then they never saw the man nor his assistant, only PIGS everywhere!!!
Welcome to the “Stock” Market!