The Truth behind STOCK Exchange

Economics

job title: Stockbroker

Ever wonder how the stock market makes money while companies are never actually bought nor sold? How investors make money by buying company shares and reselling them while the owners of the company never rotate? Here is a revealing mental picture about Stock exchange.



A STOCK-BROKER from SSX (Swaziland Stock Exchange) takes note on how his facebook friends
complain about stray dogs. He researches on where stray dogs are actually a prominent problem. Upon discovering he reaches a decision that the next stop is Mbabane.

Upon arrival in Mbabane he finds that the Mbabane Town Council pays on E5/stray dog and ppl are not encouraged to risk bieng beaten for E5. He buys the business from Town Council and he announces that he will pay E50 / stray dog submitted. So ppl actually get jackets and become un-official freelance dog collectors. Upon completing their task since there is HARDLY a visible stray dog.

The money to pay /stray dog is advertised @ SSX as "investment portfolio @ E50/unit", and ppl hardly notices the coincidence of the portfolio unit price and the unit price for a stray dog. (Besides wud u think the Central Bank of Swaziland knows anything about chasing around dogs in town?) The ppl who buy (or actually pay for stray dog collectors) are called investors.
When they ask where their money is goin, they are told its used to buy gov bonds or town Council rates patents.

The purchasing of stray dogs is called STOCK accumulation! As the dogs are few so are the investment portfolios and the price is raised to E150/unit. This will be followed by the headlines "New investment portfolio is volatile!!! Hurry while stock lasts" (the guy in the Merc buying shares DESPISE the freelance stray dog collectors and finds them annoying since he DOESN'T know that they are the money makers)

then the stock-broker tells the freelance collectors that now he will pay E100/stray dog!!! Now even a dog barking outside the gate is considered a stray dog. As the stray dogs become more scarce he advertises that it is now E400/ stray dog. Now ppl with E800 puppies will submitt them as stray dogs for the instant cash.

When all wells are dry he announces, E1, 000.00/stray dog. Ppl go crazey and they need stray dogs desperately.

The stock broker asks his assistant to sell all the collected stray dogs to ppl of Mbabane for E500. As they now know the worth of a stray dog? They all buy a stray dog for E500 waiting for next week to sell it to the stock broker, not knowing they are victims of speculation. As soon as all the stray dogs are bought, The stock broker announces that Mbabane Town Council has brought back the stray dog business from the broker. The Town Council after buying the business from the broker will soon realise that every1 has a "stray" dog and instead of actually buying stray dogs from the Town Council? Ppl are eager of selling their "stray" dogs to the town council aka Market saturation. Bad news hit the Mbabane Town council board. They announce selling the stray dog business and they never find a buyer. The stock broker has collected all the money he paid for in 5 folds.

The good news is announced @ the stock broker's firm board meeting. Shareholders get a 20% increase which is E75 and E190 for the E50 and E150 unit holders. Leaving him with almost E150/stray dog from no capital.

He gets a bigger fund subscription . The investor are impressed by the broker's fund and they'll support him in all furure endeavors. He gets a happy family and huge income. The investor's some of them made losses since they bought stray dogs as "streetwise extra-income". But they are now convinced that the streets don't make money, it is risky only invest on the stock market.

At the end? Ppl's money is taken and justified while mathematically not even 1 (one) stray dog was bought from the ppl of Mbabane as a whole. The stray dogs returns to the streets as ppl don't find them valuable anymore. The real capital here is SPECULATION!!! When ppl actually see all the dogs bieng bought for E50? They were shocked (shock is an agent of mentalparadigm shift) and they start believing in a distant reality that STRAY DOGS ARE VALUABLE.

Investor's money is multiplied, if taken, legal action to recorver the Investor's money. The Investor's are protected but not the ppl.

Remember the STOCK-BROKER HAD NO START-UP CAPITAL!!!!