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A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
An individual or institution that owns bonds in a corporation or other organization.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.