Placoderms are an extinct class of armoured fishes containing several orders. Placoderm comes from Greek words for “plate” and “skin.” They are jawed fishes, but so ancient that they precede both sharks & rays and bony fishes: some elements of the skeleton are cartilaginous while others are bony and there are bony elements in their skin armour. Yes, bones and teeth are derived from skin tissue. They appeared in the fossil record about 420 Ma in the Early Silurian and by 400 Ma in the Devonian all major placoderm orders were present. (See “Australia: The Land Where Time Began: Placoderms“.}
Before placoderms, all fertilization of eggs by sperm occurred outside the body, as females released eggs and males released sperm into the water. They might hover near each other, but if sperm found egg it was partly by chance. Female fishes release their eggs through a cloaca, an opening for both eggs and bodily wastes. As the fish that were closest had the most success, eventually males began to position themselves at the cloaca. One group of placoderms, the ptyctodontids, have these external claspers to hold the female, as do sharks. The pelvic fin perhaps developed a tube shape to funnel the male’s sperm into the female’s cloaca. Some modern fish mate in this way. What is known is that some placoderms gave birth to live young, which means that that at the very least, eggs were fertilized while still in the female. In short, these early fishes invented internal fertilization.
Rhamphodopsis threiplandi, a placoderm with claspers (from Wikipedia)
There are two pathways after internal fertilization. One is ovivipary, where eggs are retained and hatch inside the mother, who then expels the young. Some sharks still do that. In fact, in some sharks the first young to hatch eat the other eggs to nourish themselves until birth. Females may develop areas of nourishing skin that the young can scrape off. The other main path is for the young & the female to cooperatively grow a placenta, which attaches to the her and extracts nourishment from her blood. (Placentas could not have happened without a retrovirus inserting itself into the genome, but that’s another topic.)
At first, scientists thought that young placoderms inside larger fossils could have been evidence of predation; but at last a tiny fossil placoderm was found with a tiny umbilical cord, still attached to the mother.