What It Is:
A bondholder is a person who owns a bond issued by a borrower, typically a company or a government.
How It Works/Example:
A loan agreement between an issuer and an investor, and the terms of the obligate the issuer to repay the borrowed amount (the principal) by a specific date. The investor (the bondholder) usually earns a specific amount of interest on a semiannual .represents a
Bondholders can buy and sell theiron the .
Why It Matters:
Being a bondholder is much different that being a shareholder. For one thing, bondholders are liquidation after this point, if there is anything left. This seniority provides an extra level of security for bondholders, and this is one reason are generally considered "safer" than .; shareholders are owners. Also, bondholders cannot vote and they are not entitled to dividends. But perhaps most important is the fact that bondholders rank senior to shareholders. This means that the bondholders are among the first in line to be repaid in the event the liquidates. Shareholders might receive some proceeds from the