Sunday, December 26, 2010

Issuer

An issuer is an entity that issues a security. This term may have more profound, and varying meanings depending on the jurisdiction i.e. in a sense of regulatory and legal implications. But in essence the issuer is the entity that is responsible for fulfilling the obligations of the security. For example the issuer of a bond is responsible for making interest payments and principal repayments, an issuer of units in an investment fund is responsible for reporting and ensuring the fund complies with its mandate and so-on.

Synonyms: Manager, Issuing entity, Borrower, Fund manager, Lead manager, Promoter, Company, Counter party
 
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