In an intermediated market, a financial institution channels loanable funds from individual and corporate savers to borrowers.
In a direct or non-intermediated market, borrowers such as a goverment or a large corporation issue securities directly to the public.
Nearly all borrowers-individuals, businesses, governments, and international organizations such as the World Bank-use financial intermediaries to some extent. Nations differ in the extent to which intermediated debt is augmented by debt issues sold directly to the public.
Finally, financial market can be categorized according to their operational, informational, and allocational efficiency.