An issuer can be a state, local government body, company, or bank. By issuing securities, the issuer attracts funds and assumes corresponding obligations: for bonds—to pay coupons and return the principal, for shares—to ensure shareholder rights.
Public status entails obligations: disclose financial statements and material facts, undergo audits, comply with corporate governance requirements. These obligations make the issuer accessible for investor analysis.
Issuer assessment is based on several elements: financial condition and debt burden, ownership structure, management quality, credit rating, history of obligation fulfillment. For debt instruments, the structure of the specific issue matters—collateral, order of claims, presence of call options.
A key distinction: by purchasing a share, an investor becomes a co-owner and shares in business results; by purchasing a bond, becomes a creditor with predetermined claims. The same issuer can be reliable as a borrower and unattractive as an equity investment target.