How the stock market really works?

In a tiny village, a man decided to engage the villagers by offering them some work.

He announced that he would buy monkeys from them for Rs 10 per monkey. So, the villagers began catching them by the dozen, and as promised the man paid them.

But pretty soon the villagers became laid-back and the pace of work slowed down. So, the man offered to pay Rs 20 for every monkey they caught.

The villagers started catching monkeys with a vengeance, again. But pretty soon the supply diminished, and people returned to their farms. The going price was raised to Rs 25 and then, Rs 50.

Then one fine day the man had to visit the city and asked his assistant to take over.

The assistant came up with a new game place. He asked the villagers to buy the same monkeys that were sold by them for Rs 35 and sell them to the man for Rs 50. The villagers queued up with all their savings to buy the monkeys.

After some days, neither the man nor the assistant could be found. There were monkeys all around!

Thats really how a stock market works..