Final answer:
Issuer transactions refer to the sale of securities by the issuing company directly to the investing public, such as through an initial public offering (IPO). These transactions provide funds for the company and allow investors to participate in the company's growth.
Step-by-step explanation:
In the context of securities, issuer transactions refer to the sale of securities by the issuing company directly to the investing public. This means that the company offers its stock or bonds directly to individual investors, mutual funds, insurance companies, and pension funds, rather than selling them in a secondary market.
An example of an issuer transaction is an initial public offering (IPO), where a company sells its stock to the public for the first time. During an IPO, the company offers its shares directly to investors, allowing them to buy the stock directly from the company.
Issuer transactions are important for companies as they provide the funds needed to repay early-stage investors and expand operations. They also allow investors to participate in the company's growth and earn a return on their investment.a