Investment Banking Explained
Young Chuck moved to Texas and bought a Donkey from a farmer for $100. The farmer agreed to deliver the Donkey the next day. The next day the farmer drove up and said, “Sorry son, but I have some bad news, the donkey died”.
Chuck: “Well, then just give me my money back.”
The farmer: “Can’t do that. I went and spent it already.”
Chuck: “OK, then, just bring me the dead donkey.”
The farmer: “What ya gonna do with him?” Chuck: “I’m going to raffle him off.”
The farmer: “You can’t raffle off a dead donkey!”
Chuck: “Sure I can. Watch me. I just won’t tell anybody he’s dead.” A month later the farmer met up with Chuck and asked, “What happened with that dead donkey?”
Chuck: “I raffled him off. I sold 500 tickets at two dollars apiece and made $998.”
The farmer: “Didn’t anyone complain?”
Chuck: “Just the guy who won. So I gave him his two dollars back.”
Chuck works in a large US investment bank.
Via e-mail.