Intermediary Debt Securities, Investment Funds, and Markets
The intermediary financial market consists of commercial banks, savings and loans, insurance companies, investment funds, and other financial intermediaries. These intermediaries sell financial claims to investors, and then use the proceeds to purchase debt and equity claims or to provide direct loans. Commercial banks, for example, obtain funds from investors by providing deposits and money market accounts, selling securities, and borrowing and then using these funds to provide loans and make investments. Life insurance companies, pensions, trust funds, and investment funds offer financial instruments in the form of insurance policies, retirement plans, and shares ...