What is the definition of a creditor?

A creditor is defined as a person or entity that lends money to another party, which is typically a borrower or debtor. This relationship is fundamental in finance, as it involves the extension of credit with the expectation that the borrowed amount will be paid back, often with interest. Creditors provide loans for various purposes, including personal loans, mortgages, or business financing.

In contrast, the other options describe different roles within the financial ecosystem but do not accurately capture the definition of a creditor. A borrower, for instance, takes on the debt responsibility and is not the creditor. A shareholder refers to an owner of shares in a company and does not inherently have a lending role. A financial analyst is involved in analyzing financial data and does not relate directly to the lending or borrowing process. Understanding these distinctions is essential to grasp the broader concepts of finance and credit relationships.