What is the definition of bondholder?
A bondholder is an investor or the owner of debt securities that are typically issued by corporations and governments. Bondholders are essentially lending money to the bond issuers. In return, bond investors receive their principal—initial investment—back when the bonds mature.
What will result in a conflict between the bondholder and stockholder?
Sources of conflict include dividends, distortion of investment, and underinvestment. Protective covenants in bond documents work to resolve these conflicts.
What is another name for a bondholder?
Bondholder Synonyms – WordHippo Thesaurus….What is another word for bondholder?
| shareholder | stakeholder |
|---|---|
| Maecenas | fairy godmother |
| smart money |
What is the relationship between shareholders and auditors?
The audit is the linchpin to give shareholders confidence that they can rely on published financial statements to decide whether and in which companies to invest, and at what price. Auditors were intended to be the eyes through which both directors and investors look for the truth.
How can bondholders protect themselves?
Bondholders can protect themselves by inserting protective puts into their debt, allowing them to put the bonds back to the firm and receive face value.
Should shareholders take actions that are detrimental to bondholders?
Should shareholders (through managers) take actions that are detrimental to bondholders? Is maximizing stock price the same thing as maximizing profit? -No. Generally, there is a high correlation between EPS, cash flow, and stock price, and all of them generally rise if a firm’s sales rise.
How do you become a bondholder?
If you own shares of the company’s stock you are a shareholder in the company. If you own bonds issued by the company you are a bondholder.
Is a debt holder a bondholder?
Full Definition of Debtholder A debtholder is an investor who holds a debt instrument, most commonly a bond. With bonds, the terms bondholder and debtholder are used interchangeably. In the event of bankruptcy, ownership of the bond issuer transfers from stockholders to debtholders.
Are shareholders accountable to auditors?
Whilst US corporations have shareholders and boards of directors, shareholders in the US have little to do with the audit process and auditors have no direct accountability to them. In effect, they act in place of the owners of the company i.e. the independent directors act as principals.
What is a bondholder?
What Is a Bondholder? A bondholder is an investor or the owner of debt securities that are typically issued by corporations and governments. Bondholders are essentially lending money to the bond issuers. In return, bond investors receive their principal —initial investment—back when the bonds mature.
What is a’bondholder’?
What is a ‘Bondholder’. A bondholder is the owner of a government, municipal or corporate bond. Investors may purchase bonds directly from the issuing entity or on the secondary market if the original bondholder decides to sell prior to maturity. Bondholders are entitled to a return of principal when the bond matures and,…
What is a bond and how does it work?
Bondholders are essentially lending money to the bond issuers. In return, bond investors receive their principal —initial investment—back when the bonds mature. For most bonds, the bondholder also receives periodic interest payments.
What happens to the principal when a bond mature?
In return, bond investors receive their principal —initial investment—back when the bonds mature. For most bonds, the bondholder also receives periodic interest payments. A bondholder is an investor who acquires bonds issued by an entity such as a corporation or government body.