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Bondholder |
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Bondholder A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. Bondholder A person or company that owns a municipal or corporate bond. The bond represents a debt that the bond issuer owes to the bondholder. Thus, a bondholder usually has the right to receive principal and interest on this debt, though some derivatives separate the two. In the event of the bankruptcy of the issuer, bondholders have priority over shareholders in the liquidation of assets.
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