Debtholder Meaning: Definition, Examples, and Translations
💰
debtholder
[ˈdɛtˌhoʊldər ]
Definition
financial
A person or entity that holds debt securities issued by a company or government. Debtholders are entitled to receive interest payments and the repayment of the principal amount at the maturity date.
Synonyms
Which Synonym Should You Choose?
Word | Description / Examples |
---|---|
debtholder |
Use 'debtholder' when referring to anyone who holds debt instruments issued by companies or governments, generally in a more formal or broad financial context.
|
creditor |
Use 'creditor' when referring to anyone or any entity to whom money is owed. This is a general term that can include banks, financial institutions, or individuals.
|
bondholder |
Use 'bondholder' specifically when referring to someone who owns bonds, a type of debt security. This term is particularly relevant in the context of government or corporate bonds.
|
lender |
Use 'lender' when referring to an entity or person who provides loans to others. This term is common in personal finance and business lending.
|
Examples of usage
- Debtholders of the company will be paid before equity shareholders in case of liquidation.
- The debtholders are concerned about the company's ability to meet its debt obligations.
Translations
To see the translation, please select a language from the options available.
Origin of 'debtholder'
The term 'debtholder' originated in the world of finance to refer to individuals or entities that provide capital to companies or governments in the form of debt securities. Debtholders play a crucial role in the financial markets by lending money in exchange for interest payments and the promise of repayment. The relationship between debtholders and borrowers is governed by legal agreements that outline the terms and conditions of the debt. Over the years, the concept of debtholders has evolved to encompass a wide range of debt instruments, including bonds, loans, and other forms of debt financing.
See also: debt, debtor, debts, indebted, indebtedness.