• (1) The entity, such as a corporation or municipality, that offers or proposes to offer its securities for sale. (2) The creator of an option: the issuer of an over-the-counter option is the option writer, and the issuer of a listed option is the Options Clearing Corporation. There are two exceptions to the definition of issuer. In the case of voting-trust certificates or collateral-trust certificates, the issuer is the person who assumes the duties of depositor or manager. Also, there is considered to be no issuer for certificates of interest or participation in oil, gas, or mining titles or leases where payments are made out of production.
• An entity that issues a financial asset.
| ||Embedded terms in definition|
Options clearing corporation
| ||Referenced Terms|
| ||American shares: Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Issuer. The certificates represent claims to foreign equities.|
| ||Bearer bond: Is a security which does not have the owner's name on the certificate. Interest and principal are paid to the person presenting the attached coupons to the agents for payment. This type of ownership compares to registered or book entry form.Bonds that are not registered on the books of the Issuer. Such bonds are held in physical form by the owner, who receives interest payments by physically detaching coupons from the bond certificate and delivering them to the paying agent.Bonds for which payments are made to the bearer.|
| ||Bearer security: A security the owner of which is not registered on the books of the Issuer. A bearer security is payable to the holder.|
| ||Best efforts sale: A method of securities distribution/ underwriting in which the securities firm agrees to sell as much of the offering as possible and return any unsold shares to the Issuer. As opposed to a guaranteed or fixed price sale, where the underwriter agrees to sell a specific number of shares (with the securities firm holding any unsold shares in its own account if necessary).|
| ||Bond: Long-term debt instrument used by business and government to raise large sums of money, generally from a diverse group of lenders. In the case of business bond Issuers, a specific asset or assets are pledged as collateral.A bond is essentially a loan made by an investor to a division of the government, a government agency, or a corporation. The bond is a promissory note to repay the loan in full at the end of a fixed time period. The date on which the principal must be repaid is the called the maturity date, or maturity. In addition, the Issuer of the bond, that is, the agency or corporation receiving the loan proceeds and issuing the promissory note, agrees to make regular payments of interest at a rate initially stated on the bond. Interest from bonds is taxable based on the type of bond. Corporate bonds are fully taxable, municipal bonds issued by state or local government agencies are free from federal income tax and usually free from taxes of the issuing jurisdiction, and Treasury bonds are subject to federal taxes but not state and local taxes. Bonds are rated according to many factors, including cost, degree of risk, and rate of income.A formal certificate of debt, issued by corporations or units of government.A legal obligation of an issuing company or government to repay the principal of a loan to bond investors at a specified future date. Bonds are usually issued with a Par or face value of $1,000, representing the amount of money borrowed. The Issuer promises to pay a percentage of the par value as interest on the borrowed funds. The Interest payment is stated on the face of the bond at issue.Bonds are debt and are issued for a period of more than one year. The U.S. government, local governments, water districts, companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically.The term bond refers to long-term debt of companies or governments.|
| ||Related Terms|
| ||Multiple issuer pools|
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