Meaning – The term issuer, refers to a financial institution that issues payment cards to individuals. An issuer can act as its own certificate authority (CA) or can contract with a third party for the service.
An issuer also refers to a legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or domestic or foreign governments.
Issuers are legally responsible for the obligations of the issue and for reporting financial conditions, material developments, and any other operational activities as required by the regulations of their jurisdictions.
Example of usage – “Imagine XYZ Corporation sells common shares to the general public on the market to generate capital to finance its business operations. This means XYZ Corporation is an issuer and is therefore required to file with regulators, such as the Securities and Exchange Commission (SEC), disclosing relevant financial information about the company.”
