What is an issuer & how does it work?

An issuer is any legal entity that seeks to raise money by selling securities to fund new projects or investments, or to expand operations. Issuers may be corporations, financial institutions, investment trusts, or domestic or foreign governments. In addition to stocks and bonds, issuers may be seeking investments in derivatives or debentures.

What is a securities issuer?

An issuer is any legal entity that seeks to raise money by selling securities to fund new projects or investments, or to expand operations. The most common form of securities issuers sell are stocks and bonds, but securities can include derivatives, notes, debentures, mutual funds, or exchange-traded funds (ETFs), too.

What is a non-issuer transaction?

A non-issuer transaction is one that is not directly or indirectly executed for the benefit of the issuer. Non-issuer transactions refer to any disposition of a security that does not confer a benefit to the issuer (company). An issuer is a legal entity that develops, registers and sells securities to finance its operations.

What is the difference between an issuer and an investor?

While the entity that creates and sells a bond or another type of security is referred to as an issuer, the individual who buys the security is an investor. In some cases, the investor is also referred to as a lender. Essentially, the investor is lending the issuer funds, which are repayable when the bond matures or the stock is sold.