individual or firm that extends money to a borrower with the expectation of being repaid, usually with interest. Lenders create debt in the form of loans, and in the event of corporate liquidation, they are paid off before stockholders receive distributions.
individual or firm that extends money to a borrower with the expectation of being repaid, usually with interest. Lenders create debt in the form of loans, and in the event of liquidation they are paid off before stockholders receive distributions. But the investor deals in both debt (bonds) and equity (stocks). It is useful to remember that investors in commercial paper, bonds, and other debt instruments are in fact lenders with the same rights and powers enjoyed by banks.
general term applied to any party that originates or holds loans.
Example: Among mortgage lenders are commercial banks, thrifts, credit unions, mortgage bankers, and mortgage brokers.
