A bondholder is an investor who purchases bonds issued by an entity such as a corporation or government agency.
Bond holders, in fact, become the issuer’s creditors, and therefore bond holders enjoy certain protection and priority over stock (stake) holders.
Bondholders receive back their original principal at the maturity of the bonds, in addition to periodic interest (coupon) payments on most bonds.
Bondholders can make additional profits if the value of the specific bonds they hold increases and these bonds can then be sold on the secondary market.