ABSTRACT
INTRODUCTION Recall that there are two general types of investing in securities markets, direct and indirect. When an investor purchases shares of a company directly from the company or Treasury securities online without the help of an intermediary, like a broker, this type of investing is called direct investing. Direct investing involves trading in money market, capital market, and derivative instruments. For example, the Disney Company offers investors (direct) stock purchase plans. Indirect investing takes place when investors purchase securities from a portfolio of securities managed by a fi nancial intermediary (such as a mutual fund). We discuss indirect investing in the next chapter. Figure 5.1 illustrates these two types of investing in securities.
