When a company wants to "marry" the market , the investment bank ," wedding planner " organises the "wedding" ( IPO) , for which it is handsomely paid , and invites "guests" ( institutions ) who bring presents ( buy shares ) , depending on what percentage of the equity they want release.Sometimes the institutions are offered all the available shares ( a placing ) and often the public are invited to invest. If any shares are unsold ( under-subscribed ) then the investment bank is contracted to buy them i.e. underwrites the issue.
They buy them.
If you are talking about ETFs then they have an arrangement with the MMs. The MMs buy stock, for example' and then swop them for, say an index ETF and then trade the ETF.
How do they actually turn $ into shares
