This is how the stock market works.

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for 10 $ .The villagers seeing that there were many monkeys around, went out to the forest and started catching them .The man bought thousands at 10 $ and as supply started to diminish, the villagers stopped their effort .

He further announced that he would now buy at 20 $ . 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 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 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 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 it to him for 50 $ . ‘ 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 !!