Saturday, April 27, 2013

Monday, March 25, 2013

How the Equity Price is fixed in Stock Market?


Copyright Violation:)

How the Equity Price is fixed in Stock Market!

One man Mr.A has a cow. It’s too old does not give any milk, he felt it was expensive to feed it and decided to sell it without the consent of his wife.

One day when his wife went to shopping, he sold this cow to Mr.B for $200. When Mrs. A came back no cow, she was angry and shouted at her husband, and Mr. A went and bought same cow for $400. After the sale Mr. B thought there may be something special with the cow otherwise Mr. A wouldn't have came back and bought it for double amount. So next day Mr.B approached Mr. A and offered $600 for the cow. For an offer of $600 Mr.A blinked and sold the cow. But again under the pressure of a ferocious Mrs.A, Mr.A bought back the cow for $800. But after selling the cow Mr. B was not able to sleep without buying again the same cow for $1000. After selling the Holy Cow to Mr. B, A ran to the market and bought a milking young cow for $600 and suppressed the anger of his wife.
By this time
 the useless cow became a Holy $1000 Cow!
Even though it was the same useless cow.
NB: Since the Cow is at sale all BULLs quotes higher price and price shoots.The cow is too old so BEARs always offer low price! :)-|:
:)-|: