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Convenience

Financial intermediaries convert direct/primary securities into a more convenient hide of investment. They divide primary securities of higher denomination into indirect secure lower denomination. They also transform a primary security of a certain maturity into the indirect security of a different maturity. For instance, as a result of the redemption/repurchase duty available to unit holders of mutual funds, maturities on units would conform more with the desires of the investors than those on primary securities.

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