Legal Definitions - issuer

The term “issuer” refers to any person or entity that issues or plans to issue a security. This includes:

• Certificates of deposit, voting-trust certificates, or collateral-trust certificates
• Certificates of interest or shares in an unincorporatedinvestment trust
• Fixed, restricted management, or unit type securities
• Equipment-trust certificates or similar securities
• Fractional undivided interests in oil, gas, or other mineral rights

For example, if a company wants to raise money by selling stocks or bonds, it is considered the issuer of those securities. Similarly, if an investment trust issues shares to the public, the person or persons who manage the trust are considered the issuer. In the case of equipment-trust certificates, the issuer is the person who will be using the equipment or property that the securities are based on.

The definition of issuer is important in securities law because it determines who is responsible for providing accurate and complete information to potential investors. The issuer is typically required to provide a prospectus or other disclosure document that outlines the risks and benefits of the investment.