Issuer
Who is a securities issuer?
Issuer - in the financial sphere is an organization or a company that has issued its securities to the financial markets: stocks, bonds, promissory notes etc. The main goal of the issuer in these actions is to obtain additional profit for the company, as well as to finance its further activities.
Who is the issuer?
The process of issuing securities into circulation is called emission. Before the issue of the issuer are checked by special bodies. Once a company has been granted the status of an issuer, all of its economic activities must be transparent to every holder of its securities.
According to Russian legislation, only joint-stock companies can become issuers in Russia. They may issue all types of shares authorized for circulation on the territory of the country. Government securities (bonds and loans) are not authorized for issue by issue.
What does issuing securities give the issuer?
The issuer, by issuing certain securities, receives additional financing in various forms. Bonds are just a special way of borrowing. By issuing bonds, a company sells the right to lend it money at a specific interest rate and for a specific period of time. The issuer, a joint stock company, by issuing additional shares, sells the right of ownership of a part of the enterprise and, accordingly, the right to participate in management. The issuance of shares can be both open, when securities can be purchased by public subscription or on the stock exchange by anyone; and closed - among a limited number of persons.
In any case, the owner of the shares is entitled to income from the issuer's business activities in the form of dividends.
Issuers issue shares...
Issuers of securities always occupy a seller's position on the stock market. A share or other security is a "commodity", the quality of which is determined by the issuer's status and performance. All equity securities are subject to state registration.
In order for an issuer to be able to sell its shares or bonds profitably, much less to place them on a particular stock exchange, it must meet certain criteria, including the level of income, legal status, size of authorized capital and so on.
In turn, companies whose shares are listed on reputable trading floors acquire a certain status, confirming the success of their development.
Issued securities, which turned out to be in free sale, begin to be traded at their own rate, i.e. at the current price for them. The rate of securities is largely determined by the state of affairs of their issuer. Share prices of profitable, successfully developing companies tend to grow over time.