Final answer:
Private investors typically purchase bonds on the securities exchange market after they are issued by a company. Bonds are a means for companies to raise capital for large-scale financial activities.
Step-by-step explanation:
Private investors usually buy bonds on the securities exchange market after being issued by a company. Companies issue bonds to raise capital for various purposes such as investments, paying off old bonds, or acquiring other firms. While banks can provide customized borrowing solutions, often preferred by smaller companies, larger and well-established companies tend to issue bonds as a way to secure financial capital for significant endeavours. Once bonds are issued, they can be bought and sold among investors on the securities exchange market.