What is the difference between a financial market and a financial intermediary

What is the difference between a financial market and a financial intermediary Introduction: The Pillars of Finance Hello everyone, and welcome to today's discussion on the world of finance. At its core, finance revolves around two essential components: financial markets and financial intermediaries. While they both play a pivotal role, their functions and operations differ significantly. Financial Markets: The Marketplace of Assets Financial markets are akin to bustling marketplaces, where various financial assets, such as stocks, bonds, and commodities, are bought and sold. These markets can be physical locations, like the New York Stock Exchange, or virtual platforms, such as online trading platforms. Their primary purpose is to facilitate the transfer of funds between individuals, corporations, and governments, enabling the allocation of capital across different sectors and industries. The Key Players: Buyers and Sellers In financial markets, the key participants are the buyers and sellers of financial assets. Buyers, often referred to as investors, seek to acquire assets that align with their investment goals. They may be individuals, institutional investors like pension funds, or even governments. On the other hand, sellers can be entities looking to raise capital, such as corporations issuing stocks or bonds. The interaction between these buyers and sellers determines the price and value of the assets being traded. Price Discovery and Liquidity