Investment institutions【26】the third major category in our financial system. These institutions combine the relatively small amounts of savings from many individuals and invest the【27】in financial assets. Mutual funds purchase corporate stocks and bonds as well as government securities. Real estate investment trusts invest in【28】and mortgages. Money market funds invest in short - term debt securities. While individual investors can invest directly in such securities, investment institutions【29】small investors diversification and experienced management of their funds. The fourth category consists of financial companies. These companies provide loans directly to consumers and businesses. Sales and consumer finance companies lend to individuals. Sales finance companies finance installment loan purchases of automobiles and other【30】goods. Consumer finance companies provide small loans to individuals and households. The fifth category consists of securities market institutions that are involved in the savings - investment process and the marketing and transferring of claims to wealth. Credit -reporting and credit-rating organizations aid lenders in deciding whether to extend credit to consumers and businesses. (21)