Conflict between bondholders and stockholders Bondholders and stockholders may have interests in a corporation that conflict. Sources of conflict include dividends, distortion of investment, and underinvestment. Protective covenants in bond documents work to resolve these conflicts.
Majority shareholder
Majority shareholder A shareholder who is part of a group that controls more than half the outstanding shares of a corporation.
Option holder
Option holder A person who has an option that has not been exercised.