2. As shown in the middle section, transfers may also go through an investment bank (iBank) such as Morgan Stanley, which understand the issue. An understand serves as a middleman and facilitates the issuance of securities. The company sells its stocks or bonds to the investment bank, which then sells these same securities to serves. The businesses’ securities and the serves’ money merely “pass through” the investment bank. However, because the investment bank buys and holds the securities for a period of time, it is taking a risk-it may not be able to resell the securities to saves for as much as it paid. Because new securities are involved and the corporation receives the sale proceeds, this transaction is called a primary market transaction.