financial instruments can be categorized by "asset class" depending on whether they are equity based (reflecting ownership of the issuing entity) or debt based (reflecting a loan the investor has made to the issuing entity).
I was wondering why equity is reflecting ownership of the issuing entity?
My understanding is that for a stock/equity, its issuing entity is a company/firm that sells the stock/equity, while its receiving entity is an investor that buys the stock/equity, and equity reflects ownership of the receiving entity i.e. investor instead of the issuing entity i.e. the company. Or am I wrong?
Thanks and regards!