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Definition of 'Issuer'

An issuer is a company or organization that sells bonds or other debt securities to investors. The issuer uses the proceeds from the sale of these securities to finance its operations or to make a major acquisition.

The issuer is responsible for making interest payments to the bondholders on a regular basis and for repaying the principal amount of the bonds at maturity. The issuer's creditworthiness is a key factor in determining the interest rate that it will pay on its bonds.

There are a number of different types of issuers, including:

* Governments
* Corporations
* Municipal governments
* Non-profit organizations

Government issuers are typically considered to be the safest issuers, as they have the power to raise taxes to repay their debts. Corporate issuers are generally considered to be riskier, as they may not be able to continue to make interest payments if their business operations are adversely affected. Municipal issuers are somewhere in between governments and corporations in terms of creditworthiness.

The type of issuer is an important factor to consider when investing in bonds, as it will affect the risk and return of the investment.

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