A flow of funds from savers to borrowers through financial intermediaries such as banks is ▼ direct indirect finance, while a flow of funds from savers to firms through financial markets, such as the new york stock exchange is
As money flows from borrowers through the intermediaries, this becomes a form of indirect finance, since the business is not directly receiving the money. When the firms receive the money from the savers personally, this is a form of direct finance.
