We learned that in high school chemistry class.
http://en.wikipedia.org/wiki/Meniscus
The "meniscus" must be taken into account when making careful measurements from a burette or graduated cylinder.
"A convex meniscus occurs when the molecules have a stronger attraction to each other (cohesion) than to the material of the container (adhesion). This may be seen between mercury and glass in barometers and thermometers. Conversely, a concave meniscus occurs when the molecules of the liquid attract those of the container's, causing the surface of the liquid to cave downwards. This can be seen in a glass of water."
And yes, it is related to capillary action. (read on)