Issuer
The issuer is an organization that issues securities, banknotes and other assets. Various structures can act as an issuer, and the process of issuing securities is called issue.
For example, only the state has the authority to issue banknotes: other structures do not have the right to print money.
Rights and obligations of the issuer
Rights. The issuing company is authorized to carry out activities in the market, to make a profit for its work, to fulfill the purpose provided for by the current legislation.
Responsibilities. After the issue of the Central Bank, a legal entity is obliged to control sales, the legality of transactions, and fulfill all the terms of the contract.
Functions of the issuing company
This is the direct issue of securities and ensuring the rights assigned to the securities issued into circulation.
Types of issuers of securities
Issuers are of the following types:
The state acts as the largest issuer and has external and internal debt obligations. It owns the right to issue banknotes. The state carries out its issuing activities through the Treasury, the Central Bank, commercial banks and other credit and financial organizations. Most of the external debt obligations are presented in the form of loans, and internal — bonds and loans. Investors' interest in government-issued securities is rather weak. The reason for this is past financial crises that negatively affected bond sales (for example, the 1998 crisis).
Municipal authorities. An active growth in demand for securities issued by municipal structures has been noted since 1993. However, after the crisis in 1998, investor interest dropped sharply, and currently the demand for securities of this group of issuers is extremely low.
Legal entities, which can act as commercial and non-commercial structures. These economic entities are the most popular issuers, thanks to which the continuous functioning of the investment exchange is ensured.