Financial products are bought and sold in the capital market, which is divided into primary and secondary market. When corporations or investors sell stocks directly to the public, it is done in the primary market. In a nutshell, the primary market creates an avenue for corporations and companies to sell securities and make offers to the public. Transactions are conducted between the issuer and the buyer like when a company makes an Initial Public Offering (IPO) they've decided to sell stocks to the public for the first time. In this market, securities are purchased from the issuer without any 3rd party. .