Postponement option

Postponement option

The option of deferring a project without eliminating the possibility of undertaking it.

Postponement Option

The ability or decision to delay a planned project without canceling it. This decision is undertaken if a party, often a financial backer, wants to undertake a project but unexpectedly lacks the capital to do so. In the case of a new issue of a stock or bond, the postponement option may be exercised if the issuer believes that demand for the issue will be low. In some cases, it may simply be an indication that a financial backer is no longer interested in a project.
References in periodicals archive ?
In general, as we progress from one form postponement option to another, we pass from the redesign of internal to the redesign of external activities.
Each of the three companies under consideration has introduced one of the three forecast-based form (= attribute) postponement options.
Many students choose federal loans over private loans because the federal government features fixed rates, puts students on an income-based repayment plan and offers postponement options.