Issuer

An issuer is an entity, e. g. a company, that offers its securities for sale. By issuing securities, issuers raise debt capital, that is they borrow money which they have to pay back, including interest, after a specified period of time. Raising capital through the issuance of shares is equity financing, which means that the money does not have to be paid back at a certain point in time and no interest accrues. The buyers of shares expect a return on their investment through the distribution of profits (dividend payments) and share price gains.