What is one of the primary roles of an intermediary in the securities industry?

In the securities industry, an intermediary serves a critical function by facilitating transactions between buyers and sellers. This role is essential because it helps ensure that market participants can efficiently exchange securities, which enhances liquidity in the marketplace. Intermediaries can include brokers and dealers who link buyers with sellers and assist with the execution of orders.

Facilitating these transactions involves not just matching buyers with sellers, but also managing aspects such as pricing, clearing and settlement of trades. By doing so, intermediaries contribute to the overall efficiency and effectiveness of the capital markets, enabling smoother and more transparent trading activities. This process is vital for maintaining investor confidence and market stability, thus underlining the importance of intermediaries in the securities industry.