Posted on the Toll thread last month, but still applicable here
A well presented fella walks into a village in the jungle and announces that he will gladly purchase any monkey for $10. The villagers were thrilled and rounded up the nearest monkeys and sold them to him.
The next day the same fella offers $20 a monkey, and after much searching the villagers managed to find more monkeys.
The next day he offered $30 but only a six turned up. The next day $40 with only one or two, and the day after $50 until he had all the monkeys in the region in his cage.
Then he announced that he had to leave on business for two days but his assistant would purchase any new monkeys that were presented for $100.
After he left the assistant told the villagers that if they bought the monkeys in the cage from him for $35, they could sell them back again to the fella for his asking price of $100.
The villagers couldn't have bought the monkeys off him any quicker than they did. And they bought all the monkeys back.
That night the assistant too had to leave on business for two days.
And neither he nor the well presented fella were ever seen again.
You now have a thorough understanding on how the stock market works.
halas