What is issuer?
Where have you heard about issuers?
If you're an investor, you might have come into contact with them. Essentially, an investor is lending the issuer funds, repayable when the bond matures or the stock is sold.
What you need to know about issuers.
An issuer could be a government, or a private company. So if a company registers a stock, arranges to have it underwritten, and keeps the proceeds from its sale, it is said to be the issuer. Issuers are also considered to be borrowers, because their investors are lending them funds. The issuers are rated by companies such as Moody's. An entity with a AAA rating has a very low rate of default and a good history of repaying debts. However, an issuer with a DDD rating is in default.
Find out more about issuers.
Check out our guide to bond market to learn more about the process of buying and selling securities.