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Capital Flows

Capital flows from those who save it to those who borrow it. This movement of capital happens primary in three ways.

Direct transfer

Direct transfers occur when a business sells its stock or bonds directly to the investor

Investment banking

Investment banking transfers occur when brokerage firm underwrites the issuance of stocks or bonds

Financial intermediary

Banks, insurance firms, mutual funds; invest savers capital in stock, bond and other investments for fixed or variable return of the original investor.
i.e. Saver invest in intermediary, intermediary invests in business