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Friday, October 2, 2009

A LITTLE STORY ON MARKETS

There was a small village, everyone in that village were living happily, one day someone from big city came with his assistant, he said - "I will give Rs. 10 for every monkey you catch, and bring it to me", villagers started catching monkeys, soon villagers found a new job. They caught monkeys and sold to that stranger & made good money, after a while they lost interest. The stranger said - "I will give you Rs. 15 for every monkey", more monkeys came in, after a while the price of monkey went up to Rs. 60 !!! Suddenly one day the stranger was out of the village his assistant said - "Look this guy does not pays me much, I want to sell all his monkeys at Rs. 50/each so when he comes back you can sell it back to him for Rs. 70" - the villagers agreed -The assistant sold all the monkeys to the villagers for Rs. 50 and went out of the village. Villagers were now left with their monkeys & still waiting........for the Stranger and his assistant to come... but none of this two came back & left villagers with their monkeys worth nothing...while that strangers made money out of nothing....

THE MORALE OF THE STORY - 
The villagers are we small Investors , our stocks are the monkeys and FII’s (Foreign Institutional Investors) are those strangers !!!
Lets us all learn the lesson,