The financially independent firm or individual that acts as the bondholders' representative is the:

Question

Quizplus · Accepted Answer

The financially independent firm or individual who acts as the bondholders' representative is called a trustee. The trustee's role is to safeguard the interests of the bondholders by monitoring the issuer's compliance with the terms of the indenture (the bond's legal contract) and taking action to protect the bondholders' rights if the issuer breaches those terms or becomes insolvent. The other options listed do not accurately describe the role of a bondholders' representative.

The Financially Independent Firm or Individual That Acts as the Bondholders