This material will consider what an issuer is. In the banking sector or in the investment industry one can often hear the term "issue". It is known that in the process of issue not only money is issued, but also securities and even payment cards, which enterprises can use to increase their activities.
Definition of the term
Emission comes from the Latin word "emissio" and generally means release. The word "issue" is used primarily in the financial fields - investment, banking and in the economy. It is used to indicate the issue of cash in cash and non-cash form, as well as the issue of various securities.
Accordingly, the issuer is the person who issues the issue. They can be public authorities or individual legal entities. In Russia, the issuer of the national currency (ruble) is the Bank of Russia - a separate legal institution of power and the country's main banking institution.
Stock market issuers
In the investment industry, the concept of issue refers to the issuance of various securities. These include bills, checks, certificates of deposit, stock and bond loans and other assets.
Issuers of securities can be both state administration bodies and commercial enterprises with various forms of organization, for example: closed and open joint-stock companies, partnerships and so on.
Placement of issued assets (shares, bonds) is carried out on the stock market. So, legal entities act as suppliers of securities. For these enterprises, emission is one of the main instruments for attracting investment and, thus, increasing capital.
Information provided by issuers
As a rule, the release of assets is strictly regulated by law. In accordance with the law on securities, issuers in Russia must necessarily provide information on their financial situation.
Disclosure of information by issuers is carried out through various reports - quarterly, accounting and annual, as well as by providing a list of affiliates. In this reporting should be reflected all the data that are associated with the fluctuation of the quotes, stocks and other assets.
The law establishes that if a government agency or a shareholder of a company requests information regarding securities, they must provide all the required information. Especially disclosure of information is relevant for commercial organizations - the state should be aware that such an issuer places its assets on the stock market in accordance with legal standards.
Also, transparency of issuers' information is ensured by posting data on the Internet, news sites and some publications. Voluntary provision of accounting and other statements positively affects the reputation of the enterprise.
Issue of shares
Among various financial assets, stocks are among the most common. Consider this type of emission in more detail.
What is an issuer - in particular, in the stock market industry? For enterprises, the issue of shares is an easy way to attract investment in the form of cash in a relatively short time. The result of the issuance and registration by the issuer of the shares is their sale, which establishes the right of the enterprise to the owners to own. Only a joint stock company can produce shares.
The advantage of stocks as capital is directly related to the market value of these assets - the larger it is, the higher the profitability of the enterprise itself and the higher its prestige. On the other hand, when the shares are depreciated, the capital of the enterprise is mechanically devalued.
The disadvantages of this type of issue include the fact that anyone can purchase assets in the form of shares, which is actually not always useful for companies. Also, the production of shares is accompanied by various costs - this is the payment of services for promotion (advertising), the provision of services of lawyers, auditors and others. In addition, additional costs arise in respect of dividend payments to preferred shareholders.
Banks as issuers
The issue of cash - the national currency - implies the issue of coins and banknotes of various denominations. In Russia, this process is carried out by a monopolist in this industry - the Bank of the Russian Federation.
It should be noted that now in Russia the principle of the "gold standard" is optional. This means that the country does not establish a monetary system where the exchange rate of the national currency (ruble) is standardized to the exchange rate of gold.
The main task of issuing money is to increase the money supply. The production of cash in the form of banknotes is carried out in printing houses organized for them. Various forms are also issued here, for example, passport forms, certificates.
What are coin issuers and where are they? The issue of metallic money is carried out in specialized enterprises - mints. In Russia, they are located in two cities of federal significance - Moscow and St. Petersburg. In addition to coins, they produce state signs and medals.