Legal Definitions - issuer

An issuer is the individual, company, or government body that creates and offers financial instruments, such as stocks, bonds, or other investment products, to investors or the public. Essentially, it's the entity responsible for bringing a security or financial promise into existence and making it available for purchase or use.

• Example 1: A Corporation Offering Stock
  "Quantum Innovations Inc.," a growing technology company, decides to raise money to fund its research and development efforts. To do this, it offers shares of its company stock to investors on a public exchange.

  In this scenario, "Quantum Innovations Inc." is the issuer because it is the entity that creates and sells its own securities (shares of stock) to generate capital.

• Example 2: A Bank Providing Certificates of Deposit
  "Harbor Trust Bank" offers its customers Certificates of Deposit (CDs), which are savings certificates that entitle the bearer to receive interest. Customers deposit money for a fixed period, and the bank guarantees a return.

  "Harbor Trust Bank" is the issuer of these CDs. It is the financial institution that creates these specific financial products, sets their terms, and makes them available for customers to purchase.

• Example 3: A Municipality Issuing Bonds
  The local government of "Maplewood County" needs funds to build a new public library and upgrade its water treatment facilities. To finance these projects, the county decides to sell municipal bonds to investors, promising to repay the principal with interest over time.

  Here, "Maplewood County" is the issuer. It is the government entity that creates these bonds, promising to repay investors, thereby bringing these specific debt securities into existence.