Final answer:
A direct purchase of a corporation's securities from the corporation itself is known as an exchange. It involves buying securities directly from the issuing company rather than through the secondary markets. This is not to be confused with insider trading or a tender offer.
Step-by-step explanation:
The direct purchase of a corporation's securities from the corporation itself is called an exchange. This type of financial transaction involves a direct acquisition of the corporation's stock or bonds, bypassing the secondary markets where previously issued securities are traded among investors.
An exchange is different from transactions in the stock market because it does not involve buying and selling among various market participants; instead, the corporation itself sells new or its own existing securities directly to the investor.
This can happen during an initial public offering (IPO) or any subsequent secondary offerings. It's important to note that this is distinct from an insider trading, which involves trading securities based on non-public information, and tender offer, which is an offer made to purchase some or all of shareholders' shares in a corporation.