Scenario

Direct Transfer

Transfer through an Investment Banking House

Transfer through a Financial Intermediary

Two years ago, Zachary started a new business. Now he needs additional capital to finance additional growth and is meeting with a group of $$angel$$ investors. If they decide to make the loan, they will do so directly, without the use of a middleman or other intermediary.

Edinborough Exports, Inc. would like to borrow additional debt capital. The firm has hired a firm to assist in the sale of a new issue of $10-$year bonds.

Seattle Seafood Company holds cash balances in an institution that, in turn, loans out the funds to other individuals and companies.