What is a characteristic of an investor holding corporate bonds?

An investor holding corporate bonds is a creditor to the corporation, meaning they have lent money to the company in exchange for interest payments over time and the return of the principal amount upon maturity. This financial relationship inherently does not grant bondholders the right to participate in management decisions of the corporation. In contrast, stockholders are the ones who typically have voting rights and can influence management through their ability to vote on important corporate matters like board of director elections.

Additionally, while bondholders do receive interest payments, these are not considered dividends; dividends are specific to equity shareholders. Bonds also cannot be converted to stocks unless they are specifically classified as convertible bonds, and investors do not receive regular dividends from bonds as they would from stocks. Thus, the characteristic that correctly describes an investor holding corporate bonds is that they do not have a say in management decisions.