Debtholder Meaning: Definition, Examples, and Translations

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debtholder

[ˈdɛtˌhoʊldər ]

Definition

Context #1 | Noun

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

bondholder, creditor, lender.

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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.

  • The corporation's debtholders were concerned about the recent drop in share prices.
  • Debtholders have the right to receive interest payments before any dividends are paid to shareholders.
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.

  • After declaring bankruptcy, the company owed millions to its creditors.
  • Creditors have the legal right to demand repayment according to the terms of the loan.
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.

  • Bondholders are usually less at risk than shareholders when a company goes bankrupt.
  • The government announced interest payments to bondholders would be postponed.
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.

  • The bank acted as the primary lender for the new development project.
  • Lenders often assess the creditworthiness of borrowers before approving loans.

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.