Financial Intermediaries Paper - FIN 324

In its broadest sense, the term "intermediary" includes any person who serves to bring other persons together. In the world of corporate finance, a financial intermediary is an institution that acts as a middleman between savers and borrowers. Specifically, these institutions accumulate money from investors and lend it to borrowers. A person with extra money could seek out borrowers alone and bypass intermediaries altogether (Schenk). By removing the middleman, the saver would most likely receive …

…companies, and investment companies. They key advantages these institutions provide to consumers and businesses are diversification and liquidity. These two advantages offer quick cash and minimal risk to its investors. Works Cited Boone & Kurtz. Contemporary Business 2003. Mason: South-Western, 2003. Brealey, R.A., Myers, S.C., Marcus, A.J. Fundamentals of Corporate Finance. New York: McGraw-Hill/Irwin, 2004. Schenke, Robert. "CyberEconomics: An Analysis of Unintended Consequences." 4 April 2004. <http://ingrimayne.saintjoe.edu/econ/mainmenu.htm