market intermediation

Market intermediation involves connecting buyers and sellers to facilitate transactions efficiently. Intermediaries, such as banks, brokers, or online platforms, act as middlemen to reduce search costs, provide information, and ensure trust and security. Their role helps streamline the process, lower risks, and improve liquidity in markets. For example, a stockbroker connects investors with stock exchanges, making it easier for individuals to buy or sell shares. Overall, market intermediation enhances ease of trading, increases market participation, and promotes more efficient allocation of resources.