Financial intermediary

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Financial intermediary is an intermediary that buys securities with funds that it obtains by issuing its own securities. An example is a common stock mutual fund that buys common stocks with funds obtained by issuing shares in the mutual fund.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Financial intermediary. Intermediary that buys securities with funds that it obtains by issuing its own securities. An example is a common stock mutual fund that buys common stocks with funds obtained by issuing shares in the mutual fund.

According to Principles of Economics by Timothy Taylor (3rd edition),

Financial capital market. The market in which those who save money provide financial capital and receive a rate of return from those who wish to raise money and pay a rate of return.

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