COMPONENTS OF A MARKETPLACEREFLECTI

COMPONENTS OF A MARKETPLACEREFLECTIONS ON THE FIRST TWO BASIC OBSERVATIONSThe principles outlined in the second chapter and the form in which they have been presented are admittedly difficult to grasp at first blush. Anyone who might be intimidated by their placement should have skipped over them during his first reading. To help explain and aid in an understanding of these concepts, the following three chapters will illustrate the principles espoused in the outline by taking a step back from the theoretical and presenting concrete reality. Once the reader feels comfortable with each principle, it is recommended that the Chapter 2 outline be read and reread until it is fully understood and no longer intimidating. The goal of this chapter will be to provide a primitive and introductory examination of markets. This should begin to clear up several misconceptions about the function of markets which have caused great confusion. By illustrating several market principles in a simple and easily comprehended situation, each reader's basic understanding of markets should be reinforced. The following will point out that while all the details of market principles may not be fully understood yet, each consumer does in fact already have a subconscious market understanding, which allows him to fulfill his everyday needs. It is this unconscious understanding which is each individual’s foundation for building a more complete knowledge of any market.Price and ValueMost investors and traders distinguish between understandable market situations where price and value differ, and the organized markets,