Intermediary
An intermediary is an entity that acts as a go-between for two or more parties in a transaction. Intermediaries are often used in financial transactions, such as when a bank acts as an intermediary between a borrower and a lender. Intermediaries can also be used in other types of transactions, such as when a real estate broker acts as an intermediary between a buyer and a seller. In each case, the intermediary is responsible for facilitating the transaction and ensuring that all parties involved are satisfied with the outcome.
History of Intermediary
The concept of an intermediary has been around for centuries. In ancient times, intermediaries were often used to facilitate trade between two parties. In the modern era, intermediaries have become increasingly important in financial transactions. Banks, for example, have long acted as intermediaries between borrowers and lenders. In recent years, the use of intermediaries has expanded to include a variety of other types of transactions, such as real estate and insurance.
Comparison Table
| Intermediary | Direct Transaction |
|---|---|
| Involves a third party | No third party |
| Costs may be higher | Costs may be lower |
| More secure | Less secure |
Summary
An intermediary is an entity that acts as a go-between for two or more parties in a transaction. Intermediaries are often used in financial transactions, such as when a bank acts as an intermediary between a borrower and a lender. Intermediaries can also be used in other types of transactions, such as when a real estate broker acts as an intermediary between a buyer and a seller. The use of intermediaries can provide a number of benefits, such as increased security and convenience. For more information about intermediaries, visit websites such as Investopedia and The Balance.
See Also
- Broker
- Agent
- Arbitrage
- Clearinghouse
- Escrow
- Fiduciary
- Trustee
- Underwriter
- Venture Capitalist
- Investment Banker
