The owner of a government or corporate bond. Being a bondholder is often considered safer than being a shareholder because if a company liquidates, it must pay its bondholders before it pays its shareholders. Being a bondholder entitles one to receive regular interest payments, if the bond pays interest (usually semiannually or annually), as well as a return of principal when the bond matures.

Bonds are generally perceived as being low risk, but the level of risk is dependent upon the type of bond in question. For example, holding corporate bonds will yield higher returns than holding government bonds, but they come with greater risk. Bonds are also subject to interest rate risk, reinvestment risk, inflation risk, credit/default risk, liquidity risk and rating downgrades. An advantage of being a bondholder is that some bonds are exempt from federal, state or local income taxes.

Investment dictionary. . 2012.

Look at other dictionaries:

  • bondholder — bond·hold·er / bänd ˌhōl dər/ n: a person or business entity that holds a government or corporation bond compare stockholder Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Bondholder — Bond hold er, n. A person who holds the bonds of a public or private corporation for the payment of money at a certain time. [1913 Webster] …   The Collaborative International Dictionary of English

  • Bondholder — (engl., spr. bond hōlder), Obligationen (Schuldschein , Pfandbrief etc.) Inhaber …   Meyers Großes Konversations-Lexikon

  • bondholder — [bänd′hōl΄dər] n. an owner of bonds issued by a company, government, or person …   English World dictionary

  • bondholder — A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. Bloomberg Financial Dictionary * * * bondholder bond‧hold‧er [ˈbɒndˌhəʊldə ǁ ˈbɑːndˌhoʊldər] noun [countable] FINANCE a person or organization… …   Financial and business terms

  • bondholder — UK [ˈbɒndˌhəʊldə(r)] / US [ˈbɑndˌhoʊldər] noun [countable] Word forms bondholder : singular bondholder plural bondholders someone who owns government or company bonds …   English dictionary

  • bondholder — [[t]bɒ̱ndhoʊldə(r)[/t]] bondholders also bond holder N COUNT A bondholder is a person who owns one or more investment bonds …   English dictionary

  • bondholder — noun Date: 1823 one that holds a government or corporation bond …   New Collegiate Dictionary

  • bondholder — bondholding, adj., n. /bond hohl deuhr/, n. a holder of a bond or bonds issued by a government or corporation. [1815 25; BOND1 + HOLDER] * * * …   Universalium

  • bondholder — noun The registered owner of a financial bond …   Wiktionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.