Investor Glossary-debtholderInvestor Glossary-debtholderInvestor Glossary-debtholderInvestor Glossary-debtholderInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Debtholder

The HTML to link to this page
 

A debtholder is the 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. If the bankruptcy results in a complete liquidation, the debtholder is paid out of the proceeds first. The debt held by a debtholder can be senior debt or subordinated. A debtholder possessing senior debt is in the most secure position, because senior debt obligations are paid ahead of subordinated ones. Default is not the only way for a debtholder to become a shareholder. With a convertible bond the debtholder has a choice to convert the debt to shares of preferred or common stock.



Rate this debtholder definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use