A more thorough explanation:

Intermediation is when someone or something acts as a middleman between two parties. This can involve a variety of processes, but it usually means that one party is placing something of value with an intermediary who then uses it to benefit others.

For example, when you deposit money in a bank, the bank becomes an intermediary. They take your money and lend it out to other people or businesses who need it. The bank makes money by charging interest on the loans they make, and you earn interest on the money you deposited.

Another example of intermediation is when you invest in a mutual fund. The mutual fund company takes your money and uses it to buy stocks, bonds, or other investments. They manage the investments and try to make a profit for you. In this case, the mutual fund company is acting as an intermediary between you and the companies you are investing in.

Overall, intermediation is a common process in finance and investing. It allows people to pool their resources and benefit from the expertise of professionals who can manage their money more effectively than they could on their own.