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This occurs when a business sells its stocks or bonds directly to savers a Direct transfer...

This occurs when a business sells its stocks or bonds directly to savers

a

Direct transfer
b

Indirect transfer through an investment bank
c

Indirect transfer through a financial intermediary
d

Capital transfer
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Answer #1

Option A

Generally there will a financial intermediary(also called as 'sell side') between the firms that want to raise capital and the savers who want to invest their savings(also called as 'buy side'). But some small companies skip paying commission to the intermediary and will issue securities directly to the buy side. They are called dircet transfers.
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