Võlakirjaomanik

Võlakirjaomanik is an Estonian term that translates to "bondholder" in English. A bondholder is an individual or institution that owns a bond, which is a debt security issued by a borrower (typically a corporation or government) to raise capital. When an entity issues a bond, it is essentially borrowing money from the bondholders.

As a bondholder, you lend money to the issuer for a specified period, known as the maturity date. In return, the issuer promises to pay you periodic interest payments, called coupon payments, and to repay the principal amount of the bond on the maturity date. The terms of these payments, including the interest rate and payment schedule, are outlined in the bond indenture.

Bondholders have a creditor relationship with the issuer, meaning they are entitled to repayment before equity holders (shareholders) in the event of bankruptcy or liquidation. This generally makes bonds a less risky investment than stocks, though they still carry various risks, such as interest rate risk, credit risk (the risk that the issuer defaults on payments), and inflation risk. The value of a bond can fluctuate in the secondary market before its maturity date based on market conditions and the issuer's financial health.