Introduction to Financial Markets
Financial intermediary: borrows from savers by issuing one type of . asset and lends to other borrowers in the form of a different asset. Market intermediaries (brokers, dealers): buy-sell same asset. - See text Figure 2.1: Flow of Funds - Direct Finance: - Lenders/savers matched to borrowers via financial markets - borrowers sell financial assets to lenders (possibly through a market ... ................
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