An issuer is an entity, such as a corporation, government, or financial institution, that creates and sells securities to raise capital. By issuing securities in the primary market, the issuer is essentially borrowing funds from investors and promising to repay the principal amount along with any agreed-upon interest or dividends. Issuers are legally responsible for issuance obligations and for reporting financial condition, material changes, and any other operating activities as required by the regulations of their jurisdiction.