Source: http://www.polandsecurities.com/

Mutual relations¸ which characterize markets (to others these may be economic aggregates) allow us to define likely tendencies in specific areas. Firms use these to make strategic decisions regarding the scale and place of production/provision of services¸ way of financing¸ the way settlements with clients are done¸ the costs of introducing new products to the market etc. Investment banks and funds by the following defined steps and by making their own assessments allocate both their own investments and those entrusted to them.

When markets become alike as far as a particular criterion is concerned¸ analysts try to differentiate between them by applying other criteria. Some concepts are more accurate than others. In short¸ this is the way one can define the nature of the markets¸ where besides an economically-desirable direction¸ the essence of their performance lies in their very movement¸even if this involves spinning round in a circle or chasing one’s own tail. Markets do not take on an ideal shape¸ similar to the way a drop of liquid minimalises the resistance of air.

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