Cerebrospinal fluid (CSF) is formed by selective dialysis of plasma by the choroid plexus in the ventricles of the brain. It circulates in the subarachnoid space around the brain and spinal cord, acting as a cushion and protecting the central nervous system. CSF is composed primarily of water, and also contains proteins, glucose, and other components. It is analyzed through physical, chemical, and microscopic examination to evaluate properties such as color, clarity, glucose and protein levels, and presence of cells, which can indicate various neurological conditions. CSF is collected through lumbar puncture between vertebrae in the lower back or cisternal puncture in the neck area for examination.