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What is a stock issuer

A stock issuer refers to a company limited by shares that publicly issues stocks on the stock issue market. As the issuer of stocks, it is the first subject of the stock issuance market and plays a decisive role in the stock issuance market.

Stock issuers are generally divided into two categories: one is an issuing company that only goes through the procedures for public offering of stocks, but has not applied for listing;

China has clear regulations on the qualifications of stock issuers. Throughout the various regulations, there are three basic requirements:

  1. The issuer must be a legal person organization that has been registered in accordance with legal procedures and obtained a business license . If the organization is newly established, the activities of raising shares before its establishment can only be counted as share subscription activities, and only the sponsoring organizer can issue a subscription payment receipt. Formal shares should be issued after the company has been formally declared.
  2. There must be a clear charter for issuing shares, or a special charter in the company charter . The articles of association for public offering of shares must be approved by the People’s Bank of China, and the articles of association should state: the reason for issuing the shares, the full name of the issuing unit, the total amount of shares to be issued, the amount per share, and the restrictions on purchasers of different identities.
  3. The situation of the issuer . Newly established enterprises shall introduce the promoters, business scope, and investment of the promoters to the public. Enterprises that increase capital and issue should introduce the company’s leaders, business projects, financial status, development plans, etc. to the public. These presentations must be truthful and must not be false.