Most primary securities are sold to underwriters. Underwriters buy the securities from the issuer and very soon after, resell them to clients. Securities can be either debt or equity.
Secondary markets consist of the exchange of previously issued securities.
Secondary markets have specific locations and are called exchanges. These exchanges are present in many countries all over the world. Major exchanages could be found in New York, Japan, London and Toronto. Financial Institutions Financial Institutions are instumental in transfering funds between buyers and sellers of securities. A broker merely facilitates the transaction.