Thought for the day 18 Jan 2014 13:39
Thought for the day
A man called Mr. Investor walks into a room. In that room there is a table, behind the table there are two men in suits. One is a called Mr. Broker the other Mr. Market Maker.
Through the side door comes a man in a pinstripe suit called Mr. Company.
Mr. Company has lots of pieces of paper with writing on them. He puts them on the table.
These bits of paper are called shares but he doesn’t put any money on the table. Mr. Broker and Mr. Market Maker look happily at what Mr. Company has put on the table but Mr. Broker and Mr. Market Maker don’t put anything on the table.
On the other side of the table stands Mr. Investor, standing next to him is Mr. Advisor.
Mr. Advisor whispers secrets into Mr., Investors ear then Mr. Investor gives Mr. Advisor some cash, then Mr. Investor puts a whole wad of money on the table.
Mr. Advisor and Mr. Broker and Mr. Market maker have happy grins on the faces. Mr., Company also looks happy.
In fact Mr. company is so happy he rushes off and returns 20 minutes later with more bits of paper hundreds of thousands of them in fact, he puts all of these on the table and he gives these bits of paper a name he calls them options .
Mr. Advisor whispers again into Mr. Investors ear and Mr. Investor puts more money on the table.
Mr, Advisor and Mr. Company and Mr. Broker and Mr. Market maker don’t put any money on the table they do however take Mr. investors money off the table and share it out between them self’s .
Mr. Investor consoles himself as he has several pieces of paper called shares!
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