Stocks and bonds are known as securities because they represent secured, or asset-based, claims on the part of the investors. Stockholders have claims on some of a corporation"s assets because each share of stock represents part ownership. Bonds represent strictly financial claims for money owed to bondholders by a company. Companies sell bonds to raise long-term funds. Markets in which stocks and bonds are sold are called securities markets. Primary securities markets: the sale and purchase of newly issued stocks and bonds by firms or government. New securities are sometimes sold to one buyer or a small group of buyer in private placements, the business that use them keep their plans confidential. Most new stocks and some bonds are sold to the wider public market. Investment banker: any financial institution that purchases and resells new stocks and bonds. Advise the company on the timing and financial terms for the new issue.