Video: Who is an issuer? This is the one who issues securities
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:42
The issuer can be, according to the definitions, a legal entity, a local government body, an executive body (having the right to issue securities and taking responsibility for them to their owners to exercise the rights assigned to them). When issuing securities against loans, state and business entities can become issuers. It may also be an individual (as an individual entrepreneur) issuing debt bonds. Thus, the issuer is a rather voluminous concept. In short, this is an entity that issues securities, fulfills obligations under them and is a resident of the Russian Federation.
The largest issuer is the state. It is represented by the Ministry of Finance. The securities it issues are considered the most break-even, since it will always fulfill its obligations. The risk of investing money is minimal, the profitability is high, they have absolute liquidity. Exactlytherefore, state-created securities occupy a leading position in the stock market in Russia.
High liquidity securities are issued by republican and municipal authorities, as well as state-backed non-state entities.
In the stock market, securities are a commodity, the issuer is the seller. One of these commodities is shares. They are produced by large JSCs. When forming a joint-stock company, it is possible to issue shares with a nominal value of ten thousand. The price fluctuates all the time, so it is impossible to reliably say (for most stocks) that this is a reliable investment. The shares of the largest industrial organizations are most in demand. like Gazprom. Their exchange rate is stable, not subject to critical fluctuations.
Banks issue not only shares, but also savings certificates, bills and certificates of deposit. The Central Bank is engaged in the issuance of banknotes (a kind of credit securities). As a rule, most bank securities are not traded on the stock market.
The list of issuers includes management companies of mutual funds (mutual investment funds), but they do not yet occupy a significant place in the securities trading market. Perhaps things will change over time.
The number of securities issued by the issuer is limited. It is determined by the Law of the Russian Federation "On the issue of securities". Every organizationthe issuer is obliged to submit a report to the Federal Service for Financial Markets of Russia (FFMS). It is compiled in a certain form. The issuer's report contains a register of securities owners, data on the subject itself and its controlling bodies. Information on the registry is submitted once a year (until February 15).
Information about the entity issuing securities (and its auditors) is provided by the FFMS in the form of a quarterly report. The report is published in the media so that all shareholders can read it. The Issuer's Quarterly Report is governed by the Regulation on Disclosure of Information by Issuers Issuing Securities.
As you can see, an issuer is not only an entity engaged in the issue of securities, but also a person responsible not only to their owners, but also to the state.
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