Bondholder

A bondholder is an investor that purchases bonds, i.e., fixed-income assets. Unlike shareholders, who are the owners of a company, bondholders are creditors. In the event of bankruptcy, they have the right to receive payment before the shareholders. Bondholders do not receive dividends as they do not hold any shares. Instead, they receive a previously established return each year for lending their money. In addition, bondholders receive their initial investment when the bond matures (i.e., upon repayment).