Bondholders
Bondholders are individuals or institutions that own bonds, which are essentially loans made to governments or corporations. When someone purchases a bond, they are lending money to the issuer in exchange for periodic interest payments, called coupon payments, and the return of the bond’s face value when it matures. Bondholders are considered creditors and have a higher claim on assets than shareholders in the event of bankruptcy. Bonds are generally seen as a safer investment compared to stocks, providing a stable income source while contributing to the funding of projects or governmental needs.
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Bondholders are individuals or institutions that have invested in bonds, which are essentially loans made to governments or corporations. When you buy a bond, you're lending money to the issuer in exchange for periodic interest payments, called coupon payments, and the return of your principal at maturity. Bondholders have a legal claim to these payments and are typically considered to have lower risk than stockholders, as they are repaid before shareholders if the issuer faces financial difficulties. Thus, bondholders have a more secure, but often lower, potential return on their investment compared to equity investors.