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Bondholder for Dummies

noun

pronunciation: 'bɑnd,hoʊldər

What does Bondholder really mean?

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Alright, so a bondholder is basically someone who owns a type of investment called a bond. Now, a bond is kind of like a loan. When you buy a bond, you're actually lending money to a company or the government. And in return, they promise to pay you back the money you lent them with some extra money called interest.

So, think of it like this: when you lend money to a friend, they owe you that money back, right? Well, it's similar with a bond, except it's a formal agreement and it usually involves a lot more money. So, a bondholder is just the person who is the "friend" in this case, but they're actually the one lending the money and expecting to get it back with some extra money as well.

Now, there are different types of bonds, like government bonds and corporate bonds. And each type of bond can have its own terms and conditions. But the basic idea is that a bondholder is someone who owns a bond and is waiting to get their money back with some interest. It's like being a sort of "money lender" but in a more official and structured way.

I hope that makes sense! Let me know if you have any other questions about it.

Revised and Fact checked by James Lee on 2023-11-15 01:38:54

Bondholder In a sentece

Learn how to use Bondholder inside a sentece

  • A bondholder is someone who has invested money in a government or company bond, and in return, they receive regular interest payments.
  • If you buy a bond from a company, you become a bondholder and the company owes you the money they borrowed from you.
  • As a bondholder, you have the right to receive the principal amount back when the bond reaches its maturity date.
  • Being a bondholder means you have a legal claim to the assets of the issuer if they fail to make their interest payments.
  • If you are a bondholder of a government bond, you are essentially lending money to the government in exchange for regular interest payments.

Bondholder Hypernyms

Words that are more generic than the original word.