Explain about the term investment intermediaries, Financial Management

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Explain about the term investment intermediaries.

Investment intermediaries:

Investment intermediaries contain finance companies, mutual funds and investment banks and securities firms.

Mutual funds:

Mutual funds pool resources through several individuals and companies and invest such resources into diversified portfolios of bonds, money and stocks market instruments.

Finance companies:

Finance companies create loans to individuals and corporations from giving consumer lending, mortgage financing and business lending.

Investment banks and securities firms:

Investment banks help corporations or governments into the matter of new equity or debt securities.

Securities firms help in the trading of existing securities into the secondary markets.


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