bondholder:

(plural: ‘bondholders‘; pronunciation: ‘bond…holder’)

(a sample of a bond)

 

a ‘bond’, in this context = a paper from a government or business/industry that promises to pay back with interest the money that has been lent at a given time in the future — it is a kind of saving one’s money

 

a person who holds (has/buys) government or industrial savings bonds,

some bondholders at a bank

e.g.

A bondholder must be extremely careful while buying the bonds — companies that offer very high interest rate may some time go bankrupt and the bondholder may be left empty-handed.

Though investing one’s savings on bonds is a safe way, a bondholder may lose savings, as everyone else does, when there is a financial crisis.

‘Burning bondholders’ is a method of paying back bondholders’ money by percentage when there is a very serious global financial crisis — for instance, depending on the seriousness of  the crisis, a bondholder may be paid 90%, if the situation is better, or in worse cases, only 10% of the bond value!

For an interesting article on bondholders, please click here.

About the Author:BC Kumar

BC Kumar, an English Language Teacher, taught in numerous countries including Ethiopia, Oman and India, shares his knowledge and passion for the English Language. Disclaimer: This is a free educational website and all content has been compiled by the author. All copyrights to images and videos belong to their respective owners.

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