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Outline the differences between a bondholder and shareholder

      

Outline the differences between a bondholder and shareholder.

  

Answers


Joel
1. Bondholders gets their incomes from the interest that the bond pays. whereas shareholders receives their incomes from selling their stocks at a profit and from dividends if the stocks pay any.
2. Unlike shareholders, bondholders depend on the legal structure of the investment rather than on its economic substance to create value.
3. Shareholders have a voting rights whereas bondholders do not have a voting rights.
4. Bondholders are viewed by the company's management and directors, as contract claimants whereas shareholders who are viewed as co-investors or venture partners.
5. Bondholders are lenders in company whereas shareholders are equity owners in the business.
Mabongajoel answered the question on April 29, 2018 at 09:25


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