Issuer: what is it? Meaning of the word

In this article we will talk about the concept of "issuer". What it is? Such a foreign word like to use in movies about businessmen. He can also be heard at a lecture at the Economic University. Still try to understand this concept. In fact, everything is not so confusing.

Issuer: what is it?

It will be about enterprises that are engaged in the issue of shares. The economic meaning of the word "issuer" is a legal entity that deals with the issue of securities. It turns out that they will be public joint-stock companies, some banks and other organizations.

In addition, the issuer can act not only a legal entity, but also executive authorities, for example, issuing government bonds or vouchers.

Emission

So, we have understood the concept of "issuer". What it is, we understand. Now we are talking about emissions. This is the process of issuing securities, that is, the creation of various stocks, bonds, vouchers, bills and other documents related to the repayment of obligations. In addition, emission is the process of creating money. It turns out that the Central Bank is also an issuer.

Despite the difference in the laws of different countries, this practice and names are applied almost all over the globe, which is very convenient and eliminates some barriers in the conduct of international business. It is important to note that the issue is not only the issue of any securities or money. It is also obligations that appear before the creators of such documents.

Information disclosure

This is a very important part of the functioning of the stock market. It is, in fact, its foundation and generates the whole point of issuing securities into circulation. The essence of this process is the available information about issuers. This is very important for both the state and other interested parties, for example, shareholders, potential buyers of securities, stock exchanges and the company itself. The disclosed information includes various data, including the current activities of the company, financial reporting, various results of work and information on prospects. Of course, it includes data on the number of securities issued, the main holders of large stakes. The more complete the information provided, the higher the confidence in the issuer, which is quite logical given the current market trends. Nobody will want to contact a company that does not behave in a fair way. Such a risk will not be justified.

But the whole point of issue of shares is to attract investors. Thanks to this, the company's capital increases, which means that it can put more money into circulation, thereby improving the product or service. In addition, organizations are required to fulfill obligations. For example, in the event of a closure, part of the property passes to holders of certain types of shares as compensation. Also, the company has the right to pay dividends, that is, make payments to its shareholders, which positively affects the image and raises the value of securities.

Results

Now you have become more competent in matters related to shares, and have an idea of the concept of "issuer". What is it, knows any economist. Nevertheless, this sphere is very cumbersome, has many different nuances and features, and the legislation is adjusted almost every year.