This article will focus on the concept of "issuer". What it is? They like to use such a foreign word in films about businessmen. He can also be heard at a lecture at the University of Economics. Nevertheless, we will try to deal with 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 issues securities. It turns out that they will be public joint-stock companies, some banks and other organizations.
In addition, the issuer can be not only a legal entity, but also executive authorities, for example, issuing government bonds or vouchers.
Emission
So, we figured out the concept of "issuer". What is it, we understand. Now we will focus on 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, the issue is called 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, similar practices and names are used almost throughout the globe, which is very convenient and removes some of the barriers to doing international business. It is important to note that the issue is not only the issue of any securities or money. It is also an obligation that appears to 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 basis and gives rise to the whole point of issuing securities into circulation. The essence of this process is available information about issuers. This is very important both for the state and for other interested parties, for example, shareholders, potential buyers of securities, exchanges and the enterprise itself. The disclosed information includes various data, including the current activities of the company, financial statements, various results of work and information on prospects. Of course, it includes data on the number of issued securities, the main holders of large blocks of shares. The greater the completeness of the information provided, the higher the credibility of the issuer, which is quite logical, given the trends of the modern market. No one wants to contact a company that does business dishonestly. Such a risk will not be justified.
But the whole point of the share issue is to attract investors. Due to this, the capital of the company increases, which means that it can put more funds into circulation, thereby improving the product or service. In addition, organizations are required to fulfill obligations. For example, in the event of closure, part of the property is transferred to the holders of certain types of shares as compensation. The company also has the right to pay dividends, that is, to make payments to its shareholders, which positively affects the image and raises the value of securities.
Summary
Now you have become more savvy in matters related to stocks, and have an idea of the concept of "issuer". What is this, any economist knows. Nevertheless, this area is very cumbersome, has many different nuances and features, and the legislation is updated almost every year.