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Homework answers / question archive / What's the difference between a direct and an indirect transfer of money between investors and firms ?
What's the difference between a direct and an indirect transfer of money between investors and firms ?
Money transfers happen directly and indirectly. Direct transfers take place between a corporation and an investor. An example of this would be an initial public offering which is directly marketed to investors. There is no middle man. Indirect transfer of assets involve an intermediary. An example of this type of transfer is purchasing stocks through a stock broker or investing through an exchange. The money is not provided directly to the corporation but instead runs through an intermediary.